A fuel retailer is targeting a significant share of Cebu's motorcycle taxi fuel market through a partnership with a ride-hailing platform. The partnership aims to provide exclusive fuel discounts and other benefits to the platform's partner riders in Cebu, expanding the retailer's reach in the market. This move is part of the company's efforts to grow its retail fuel business and increase daily fuel sales. The partnership is expected to have a substantial impact on the company's sales volume.
The partnership gives the retailer's subsidiary access to a sizable portion of Cebu's motorcycle taxi market, which is capped at 9,000 riders. Under the agreement, partner riders will be enrolled in a rewards program, offering discounts on gasoline and diesel, as well as other benefits such as free motorcycle washes. This partnership is seen as a strategic move to support the daily needs of motorcycle taxi riders and strengthen the retailer's position in the market. The rewards program is designed to encourage riders to become repeat customers.
The partnership is expected to increase customer traffic across the retailer's network and contribute to the growth of its retail fuel business. The company believes that this move will help build a stronger and more customer-focused business, aligning with its goal of being a preferred fuel partner for high-frequency road users. As demand for transport and mobility continues to grow in Cebu, the company aims to be an integral part of the daily journeys of riders, drivers, and businesses.
The company's chairman and CEO stated that the partnership has the potential to unlock significant liquid fuel sales per day, supporting the daily needs of motorcycle taxi riders. The partnership is also seen as an opportunity to strengthen the company's position in the market and increase its competitiveness. With the intensifying competition in the sector, the company has been expanding its downstream fuel network to meet the growing demand for more resilient fuel logistics infrastructure.
The company's entry into the fuel business in 2017 marked a significant expansion of its operations, which previously focused on leasing and real estate. Since then, the company has diversified into fuel trading, depot operations, and retail distribution. The partnership with the ride-hailing platform is the latest move in the company's efforts to establish itself as a major player in the fuel retail market. The company's shares were affected by the announcement, falling slightly on the day of the partnership's announcement.
