PUV Mode PUV Moderni rnizatio zation n Program Program Launched - - PowerPoint PPT Presentation

• Launched by DOTr in 2017 with the goal of making the

country’s public transportation system Efficient and Environment friendly by 2020 (DOTr DO 2017-011).

• The program calls for the phasing-out of old jeepneys,

buses and other PUVs and replacing them with safer, more comfortable and more environment-friendly alternatives.

• Introduces new routes and rationalizes existing routes

(i.e. Local Public Transport Route Plans)

PUV Mode PUV Moderni rnizatio zation n Program Program

• Modernize the current PUV fleet
• Reform and consolidate the industry
• Move towards low emission PUVs
• Improve welfare of commuters and encourage modal

shift

• Improve standards of living of drivers, operators and

their families.

PUV PUV Moderniza Modernization tion Program: Program: Objectives Objectives

PUV Moderniza PUV Modernization tion Program Program

Before After

One Franchise, One Unit Industry consolidation. Formulation of legal entities i.e. corporations and cooperatives Several Operators in One Route One Operator, One Route Policy Fleet Management, Safety Officers and Garage = Efficient Operations

• Sets new standards for vehicles and drivers. Only

accredited Class 2 or 3 Modern Jeepneys are allowed.

• Financial assistance and other social support services

provided by the government.

• March 2019 - Timeline to consolidate existing

franchises.

• June 2020 – All non-compliant jeepneys will be

phased-out.

PUV Mode PUV Moderni rnizatio zation n Program Program

• The modern jeep is a Class 2 or 3 Type PUV that

complies with the existing DTI BPS Philippine National Standards and the Clean Air Act.

• The PUV class 2 is fit for urban routes or stop-and-go

routes in cities. These vehicles can accommodate up to 23 passengers or more since standing passengers are allowed.

Mode Modern rn PUV PUV

Modern PUV

Modern PUV

Modern PUV

More features of the modern jeep are as follows: 1. Environment Friendly – Euro 4 Engine or better, Electric, Solar or Alternative Fuel

• 2. Safety – Side door, Speed Limiter
• 3. Security – CCTV, GPS, Dashboard Camera
• 4. Comfort – Air-conditioned, Automatic Fare Collection

System

Mode Modern rn PUV PUV

Mode Modern rn PUV PUV

 Fleet Strategy  Fleet Acquisition  Registration and Documentations  Maintenance and Repairs Management  Unified Dispatching  Fuel and Parts Management  Technology and Analytics

Flee Fleet t Managemen Management

1. Cebu Peoples will handle the management, repairs Regular salaries with corresponding employment benefits.

• 2. Approved work shifts resulting to higher overall

income and less accidents.

• 3. Membership in Cebu Peoples Coop which entitles the

member operator to avail of several services i.e. all- purpose loans, business loans, health insurance, mortuary, housing loan, investments, education, livelihood and employment, among others.

Ben Benefits efits for for PUJ PUJ Drivers Drivers

Ben Benefits efits for for Existing Existing Ope Operator rators

1. Financial incentive / assistance of P80,000.00 representing the partial or full down-payment of the modern PUV with the lending bank.

• 2. Fixed and variable income share derived from the

transport service operations.

• 3. Membership in Cebu Peoples Coop which entitles the

member operator to avail of several services i.e. all- purpose loans, business loans, health insurance, mortuary, housing loan, investments, education, livelihood and employment, among others.

INVESTM INVESTMENT PROGRAM ENT PROGRAM

Factors to Factors to Consider Consider when when Evaluating Evaluating an an Investm Investment ent Opportunity Opportunity

Factors PeoplesJeep

• 1. Market

Captured market. Industry consolidation.

• 2. Opportunity Window
• Nationwide. 10,000 PUVs in Cebu alone.

PUVMP Transition Period.

• 3. Competition
• None. One operator one route policy.
• 4. Business Model

Proven economically viable business model. Transportation is now considered a basic necessity.

• 5. Strategy

Modern PUV. Efficient fleet management. Captured Market.

Factors Factors to Consider to Consider when Ev when Evaluating aluating an an Investme Investment nt Opportunity Opportunity

Factors PeoplesJeep

• 6. Scalability

Cebu Peoples Coop has branches and networks all over the country.

• 7. Exit

There is an exit mechanism subject to policies and rules.

• 8. Co-Investment

Government Banks

• 9. Return

Estimated 20% ROI. Payback 5 years.

• 10. Team

Cebu Peoples Coop – one of the most distinguished, best performing cooperative in the country. More than P1.4B in assets and 60K members.

Investment Investment Program Program

 Open to ALL members of Cebu People’s Multi-Purpose Cooperative  Minimum investment of P100,000.00 in the form of equity contribution either common shares or redeemable preferred shares.  Estimated Return of Investment of 20% or Payback Period of 5 years.

Equ Equity ity Contribution for T Contribution for Transport ransport Ope Operations rations

Common Shares Redeemable Preferred Shares

Members of the Cooperative’s Transport Service Members of the Cooperative’s Transport Service Right to vote and be voted upon None None Preference in the payment of fixed and guaranteed interest at 10% based on the

• utstanding preferred share capital.

Interest on common share capital contribution not to exceed the normal rate on investment. None Additional income equivalent to the proportionate share of the remaining net surplus Additional income equivalent to the proportionate share of the remaining net surplus Right to withdraw the capital contribution subject to certain restrictions. Redeem after 7 years including accrued

• earnings. Early redemption is allowed subject

to certain restrictions and penalties.

Investment Investment Ben Benefits efits

1. Be part of one of the top community-based cooperatives in the country – The Cebu People’s Multi-Purpose Cooperative.

• 2. Safe and secured investment (Principal guaranteed)
• 3. Above industry returns (estimated 20% ROI)
• 4. Participate in governance by exercising the right to

vote and be elected as officer.

• 5. Enjoy other benefits – i.e. savings, loans, remittance,

health insurance, housing, life insurance, mortuary benefits etc.

Sa PUV Modernization Mo Asenso Kitang Tanan!

CONTACT US

Location: Hi-way 77, Barangay Talamban, Cebu City

• Tel. No. (032) 261-7988 local 406

Mobile Nos. 0922-7841418 | 0927-0383904 | 0917-6280800 Email - manager@peoplesjeep.com Website - www.peoplesjeep.com Facebook Page - PeoplesJeep