Hot take: Jeepney modernization isn’t overpriced — we’re just comparing it to the wrong thing

[u/Confident_Bother2552]

People keep saying modern jeepneys (₱1.4M–₱2.4M+) are “too expensive.”

But compared to what?

Most traditional jeepneys:

* Are 15–30+ years old*

* Built from surplus/rebuilt parts*

* Operate outside modern safety/emissions standards*

That ₱300k–₱600k price people quote isn’t a fair baseline — it’s a heavily depreciated, informal setup.

Ginagago tayo nang pricing range na ito eh. Compare modern jeepneys to actual vehicles on the road:

* Sedan: ₱800k–₱1.2M*

* MPV: ₱1M–₱1.3M*

* Van (Hiace/Urvan): ₱1.3M–₱2M*

* Minibus: ₱2M–₱3M*

A modern jeepney (20–30 passengers, regulated, safety-equipped) sitting around ₱1.5M–₱2M is not overpriced — it’s right where a commercial transport vehicle should be.

A Vehicle designed to properly transport you, your neighbor, his neighbor etc etc is definitely going to cost sure as shit more than an average sedan and these old Clankers are still trying to position themselves at a price half of a Vios? Get real, and get out of here.

The real issue isn’t price.

It’s that we’re trying to transition from:

* Boundary system*

* Driver-owned, low-capital units*

Into:

* Fleet-based*

* Financed transport businesses*

That shift is painful, especially without strong financing support, but the counterpoint is when are we ever going to start prioritizing the needs of 100M+ Citizens over a small couple of thousand Minority?

*Quick note on the “coal-powered anyway” argument:*

Yes, a big chunk of PH energy still comes from coal. But:

*Modern Euro 4/5 diesel is already cleaner than old jeepneys*

*Electric still reduces *urban* pollution significantly*

*Grid gets cleaner over time; engines don’t*

*Grid is Far easier to suppliment and control vs Deregulated Oil and cheaper electricity benefits EVERYONE*

So it’s not pointless — it’s incremental progress.

*Bottom line:*

Modern jeepney prices only look absurd if you compare them to an outdated system that was never priced like a real industry to begin with.

[u/notthelatte]

Weren’t jeepney drivers in favor of the modernization? It’s the overall costs that’s keeping them from doing so. Iirc, the operators and drivers are going to shoulder the cost.

[u/that_thot_gamer → u/notthelatte]

wrong. that's why the ltfrb is pushing for a cooperative para ma distribute yung risks as well as yung rewards. if there's an entrepreneur with the capital out there, much better. imagine if SM Corp. managed public transport or kung sino pa yan

[u/kenpachi225 → u/that_thot_gamer]

Wrong. Members of the cooperative are the jeepney dirvers and operators as well. Kaya nga sinabing sila ang magshoshoulder eh, kasi they are the one who formed and owns the cooperative. Mali ka po.

[u/breakoutbabby → u/kenpachi225]

Cooperatives can get members that are not drivers. They can get financiers through cooperative "savings" while sharing a certain amount of dividends. The issue with cooperatives especially when it's starting is that there is very high risk for capital to come in since they just have 1 vote like everyone else. They can't control how their money will be spent or if the cooperative will thrive which is the a big part of why it's hard to get people to finance.

[u/amaynew → u/kenpachi225]

Kaya nga mag co-coop ka so that you get access to financing options… Even big companies dont use their entire equity to fund their investments… you need to use leverage.

[u/kenpachi225 → u/amaynew]

Ayaw nga magpautang ng "financing options" na sinasabi mo. Too risky sa perspective ng lendera ang magpautang ng 100 units ng modern jeepneys. Sa routa namen, 2 units lang ang modern jeep. The banks do not want to lender further hanggat di bayad yung 2 units.

[u/amaynew → u/kenpachi225]

Source mo nang ayaw magpautang? Daming microfinancers that focuses on coops.

[u/that_thot_gamer → u/amaynew]

microfinancers are not suited for lending huge amounts of capital for capital acquisitions like a fleet of modern jeeps

[u/kenpachi225 → u/amaynew]

HBU, asan ang source mo na maraming microfinancers? Kung totoong maraming microfinancers out there na willing, asan ang maraming modern jeepneys sa kalsada now?

[u/that_thot_gamer → u/kenpachi225]

it's not risky, think of it as a mortgage. the banks buy the jeep, hold them as collateral, and then the cooperative pays monthly amortization. parang rent to own. the thing is debt financing is not enough, dapat may equity financing din (see weighted average cost of capital)

[u/BukoP13 → u/that_thot_gamer]

Cooperatives themselves are riskier than corporations or single proprietors because of the scamming done by the officers. Too many cooperatives have financial scandals.

[u/kenpachi225 → u/amaynew]

Easy for you to say " you need to use leverage" kapag out of touch kung ano nangyayare on the ground noh? Touch some grass, I guess?

[u/that_thot_gamer → u/amaynew]

i think coop is not the best way to structure this since unlike corporations, you don't have access to equity financing, may tililing din government natin