E-Jeepney Business

Posted by Kirhat | Tuesday, February 26, 2008 | | 4 comments »

E-Jeepney

So much has been said about the latest craze in public transport, the Electric Jeepney or E-Jeepney. It was considered as the first public transport system of its kind in Southeast Asia and can now be seen plying Ayala Avenue in Makati City. The E-Jeepney was launched by GRIPP (Green Renewable Independent Power Producer), Greenpeace, Solar Electric Co. (Solarco) and the Makati City Government. The main reason behind its production is to encourage everyone to steer clear from using fossil fuels. Eventually, it was expected that this would help mitigate climate change, by minimizing air pollution and solid waste.

Initially constructed from the leftover American World war 2 troop vehicles, jeepneys has become an iconic symbol of Filipino’s ingenuity and perseverance. They have been providing the cheapest means of commuting from one place to another for several decades now, but are also notorious air polluters.

The E-Jeepneys are offering an alternative means that belches nothing, makes no noise, high headroom, comfortable seating and large windows. It is not even cramped because the driver will regulate the capacity to a comfortable five passengers on either side.

Just like the regular jeepney, E-Jeepneys also charged PhP 7.00 per passenger for the first 5 kms. However, instead of a gas tank, E-Jeepneys have a battery compartment. This is the main reason why they are much more lighter, efficient and economical compared to a regular jeepney.

In an interview with the Philippine Daily Inquirer (22 August 2007), Solarco head Panch Pucket describe the E-Jeepney as, "… very easy to drive. Because it’s lighter, the jeepney drivers who are so used t the heavy diesel engines will feel a little weird at first, but it only takes a short while to get used to it."

However, at this time, there are only limited materials that address the feasibility of operating and driving one E-Jeepney in the country. The following section will be devoted to answering that question using what available data can be gathered from various sources.

E-JeepneyEstimated Cost

One E-Jeepney was estimated to cost around PhP 500,000.00 with one year warranty on the engine and a two-year warranty on the battery. There is also an option to install a solar-paneled roof, which could help recharge the battery, but this would cost another hefty PhP 150,000.00.

Aside from the initial investment, funds should be also set aside to ensure timely processing of required documents (i.e. franchise, permits, registration, among others). If the same set of documents will be required from both the E-Jeepneys and the regular jeepneys, then it is safe to assume that an additional PhP 30,000.00 is needed.

Given the warranties offered by the seller, it is expected that maintenance cost would start to accumulate starting the second year of operation onwards. Maintenance of the units as well as provision of spare parts and accessories will fall on Solarco, but it is not hard to imagine that once this business spreads, most of the dealers and vehicle spare parts establishments will offer alternative sources.

Potential Income

Assuming that E-Jeepneys can run for 120 kms after one charge, which is about 3 hours of continuous driving, they will run for 8 hours per day and cost Php 150.00 per charge, then charging cost per day amounts to PhP 450.00. The batteries are charged overnight by a power plant fuelled by biogas generated from the organic waste from the city's markets and households.

Assuming again that each trip (back and forth) would take about 1 hour, a 8-hour operation would generate about PhP 1,280.00 (PhP 8.00 x 10 passengers x 2 batches in one trip in 1 hour x 8 hours). The income can be further increased if the driver will try to fit in all six passengers on each side plus two in the front seat. The problem with this is that it might make it a little uncomfortable for the rest of the passengers who are expecting a more relaxing trip.

Is it worth it?

Using the estimates above, operating and driving an E-Jeepney will give potential investors a monthly income of about PhP 33,280.00. This is assuming that it is running for 26 days in a month. However, it would also cost them PhP 11,700.00 for maintenance, primarily from charging the vehicle’s battery. If the initial investment of about PhP 530,000.00 was made through a loan with a monthly interest rate of 12 percent payable in equal amounts for 3 years, then an additional monthly cost of PhP 16,489.00 will have to be deducted from the monthly take. Subtracting the total cost from the potential income means a monthly revenue of PhP 5,091.00 in the next 3 years and PhP 21,580.00 monthly after that.

Aside from the revenue stream, social benefit will also come in terms of cleaner air, better waste management, a healthier population and most importantly a significant contribution to curbing dangerous climate change. The E-Jeepney represents three good things for this country and the world: a clean environment, a favorable climate and income for the economy.

4 comments

  1. Unknown // September 11, 2008 at 1:26 PM  

    I heard it takes 8 hours to charge a battery. So for it to run 9 hours continuous it means that they need to have 2 extra sets of batteries... is this part of the cost?

  2. Kirhat // September 11, 2008 at 9:20 PM  

    Thanks for pointing that out Raymond. I'm sorry about that. It should have been 8 hours and not 9 hours. I have already corrected the value and updated the other assumptions.

  3. raffy marcelo // December 4, 2011 at 1:03 PM  

    where can i purchase an e jeepney? is there a showroom i can visit?

  4. Kirhat // December 5, 2011 at 4:13 PM  

    Hi Raffy!

    GRIPP (Green Renewable Independent Power Producer) and Greenpeace are offering installment scheme in the acquisition of their e-jeepneys. Yvonne P. Castro is the project director of GRIPP.

    I heard that they price their unit at at PhP 625,000 each, which is actually cheaper than the diesel-fed vehicles which cost around PhP 700,000. And while existing technology is limited by load and speed factors, it is expected to evolve as the need for the vehicle increases.

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