[Tricycle Drivers in Zamboanga City: Market Analysis/Market Dynamics]

By

ACKNOWLEDGEMENT

I am most grateful to my family, research supervisor and friends for their support without which this project would not have been possible.

DECLARATION

I declare that I have undertaken and executed this dissertation project. This dissertation presents my own ideas and has not been submitted before.

ABSTRACT

The research aims to identify the income decline of the tricycle drivers in Zamboanga city. The main interrelated variables that are studied are the impact of rent, gasoline prices and the competition on the income levels of the drivers. The research employed a qualitative survey method with 200 research participants. These participants are the drivers who ride the rented tricycles. It was found that the competition accounted most as an influencing factor o the income. The higher rent and the increasing gasoline prices are also two significant factors that bring about a decrease in the income. Moreover the regulations by the transport sector are not sufficient to provide enough credit to the drivers in order to support them. The government needs to ensure that with the increasing public transport, the drivers should get the leverage of purchasing their own tricycles. This purchase can be lump sum or on instalments. This will help improving the income level of these drivers to some extent, thus enabling them saving the money spent on rent and cope with the increasing gasoline prices.

Table of Contents

ACKNOWLEDGEMENT2

DECLARATION3

ABSTRACT4

CHAPTER 1: INTRODUCTION9

Background9

Research Purpose9

Significance of the Study10

Research Questions10

Hypothesis11

Research Variables11

Registered Jeepneys11

Tricycle Rent11

Gasoline Prices12

Competition12

Reason for Selecting Zamboanga City, Philippines12

CHAPTER 2: LITERATURE REVIEW14

Transport Market Analysis14

Tricycle Sector Analysis17

Comparison of Tricyle market with U.S Taxi Market23

Market Analysis and Dynamics28

Entry and Exit28

Price29

Pricing Out the Competition30

Regulations32

Existence of Various Conditions in the Transportation and the Tricycle Market34

Regulation vs. Diversity34

Policy at the Local Level: Zamboanga City35

Relationship between Regulation and Competition37

Absence of a Competitive Market37

Externalities38

Economies of Scale and Scope39

Theoretical Account of the Transport Regulation40

CHAPTER 3: METHODOLOGY43

Purpose Statement43

Research Design43

Justification for Selecting the Research Design45

Research Setting and Sample46

Selection of Organization47

Data Collection Strategies47

Sample Characteristics48

Instrument and Measures48

Demographics49

Dependant Variable49

Registered Jeepneys49

Gasoline Prices50

Competition50

Tricycle Rent50

Independent Variable50

The Rating Scale50

Data Analysis Plan51

Caveats of the Methods52

CHAPTER 4: RESULTS AND ANALYSIS53

Income and Gasoline prices56

Competition: Registered Jeepneys and Income57

Tricycle Rent60

Summary62

Recommendations63

CHAPTER 5: DISCUSSION AND CONCLUSION64

Opportunities that are overlooked by Planners64

Recommendations68

REFERENCE70

APPENDIX74

Research Questionnaire74

Tabulation for Anova and Regression Test76

List of Tables and Figures

Table 1: Road Network of Zamboanga City…………………………………………………..p. 11

Table 1.1: Number of Existing Bridges in Zamboanga City………………………………….p. 11

Table 1.2: Number of Existing Bridges in Zamboanga Peninsula............................................p. 11

Table 2: Employed Workers by Class of Workers and Grouped as Formal and Informal Sector…………………………………………………………………………………………p. 18

Table 3: Measuring the Income Gap of the Formal and Informal Sector of the Philippines…………………………………………………………………………………….p. 19

Table 4: Sources of Capital……………………………..…………………………………….p. 19

Fig 1: Schematic representation of the relationship between transport and economic development.............................................................................................................................p. 21

Fig 2: Travel modes used at least once a week, including driving………………..…………p. 23

Fig 3: Travel modes used at least once a week, including driving…………………………..p. 23

CHAPTER 1: INTRODUCTION

Background

The transport has extended unprecedented mobility to the overwhelming majority of the Philippines households, 92 percent of which possess at least one car, and over half (59%) of which own two or more and other medium of transportation ...