The biggest Philippine tech and startup stories in 2014

Before we turn the page to 2015, let’s take a refresher on much talked about events this year.

From the Uber saga to a homegrown tech leader’s market debut and major movements in e-commerce, here are the biggest stories in the Philippine tech and startup scenes in 2014.

7. CashCashPinoy controversy

This story stirred up a hornet’s nest. In November, Tech in Asia released an exclusive report about mounting complaints against daily deals site CashCashPinoy over the alleged sale of counterfeit luxury goods. The report also discussed supposed actions taken by financial institutions to suspend transactions originating from the site. CashCashPinoy maintained accusations were “unfounded.” With insights from industry and banking sources, as well as the government, Tech in Asia highlighted in its report how counterfeit goods are endemic in the ecommerce industry, and helped raise awareness on how protection of online consumers should be improved.

See: BDO suspends CashCashPinoy over alleged sale of fake luxury goods – sources

6. PLDT’s Rocket Internet stake

Philippine Long Distance Telephone Company (PLDT), one of the leading telecom operators in the Philippines, invested in August US$445 million for a 10 percent stake in Berlin-based Rocket Internet. The transaction marked the start of a strategic partnership between the two to “jointly develop mobile and online payment technologies and services” for the “unbanked, uncarded, and unconnected” population in emerging markets. This partnership particularly targets Rocket Internet’s ecommerce operations under brands such as Zalora and Lazada in Southeast Asia. In December, we saw the first product of this joint effort: MePay. PLDT unit Smart launched the payment platform for secure and convenient shopping from Zalora’s site without a credit card. Consumers only need to provide their mobile phone numbers upon signup, and they’re all good to go.

5. PLDT freebie

Free internet, anyone? In September, PLDT provided free internet access to prepaid subscribers of its mobile brands Smart, Talk ’N Text, and Sun Cellular. The service was announced in a press conference by no less than PLDT chairman Manuel Pangilinan, who disclosed on his Twitter account days prior that they would be making a “very important” statement. Pangilinan said the free internet for prepaid subscribers for a period of two months was meant to “stimulate internet habit.” Prepaid subscribers account for about 90 percent of the PLDT group’s mobile subscribers. In October, Pangilinan gave another surprise announcement: the free internet promo was extended till January 2015, and now included postpaid and broadband subscribers.

4. SM and Rustan’s Group ecommerce sites

Competition in the Philippine ecommerce space grew tighter after two retail giants SM and SSI Group, a member of the Rustan’s group of companies, launched their own online platforms in a bid to capture the growing sector of internet shoppers. SM’s online store offers men’s, women’s, and children’s accessories, apparel, bags and shoes, among others. SSI’s e-store, on the other hand, initially carries 17 high-end brands in its portfolio, namely Marks & Spencer, TWG, Oliviers & Co., Payless Shoe Source, Nine West, Aerosoles, Bass, Superga, Steve Madden, MBT, OkaB, A/X Armani Exchange, Replay, High Sierra, Samsonite, Beauty Bar, and MakeRoom. How their move will affect ecommerce sites is something to closely watch.

3. OLX’s and Ayosdito’s marriage

In November, Southeast Asia’s ecommerce scene was rocked when classifieds giants Naspers, Schibsted Media Group, Telenor Group, and Singapore Press Holdings put an end to their rivalry, and decided to join forces. Four countries were affected by this change: Indonesia, Thailand, the Philippines, and Bangladesh. In the Philippines, the deal translated into the merging of brands OLX (formerly Sulit.com.ph) and Ayosdito. The two brands were the biggest competing classifieds in the country, employing various channels like billboard, vehicle, and TV ads to lure customers. As a result of the merger, Ayosdito will close and its users will be redirected to OLX starting January 2015.

See: OLX merger: here’s how operations in Indonesia, Thailand, the Philippines, and Bangladesh will be affected

2. Xurpas’ much-anticipated IPO

Mobile content and services provider Xurpas’ US$30.4 million IPO made headlines not just in the Philippine tech and startup scenes, but also among investor groups. The company’s share price hit the ceiling in its first trading day, making it one of the best IPO performances in the Philippines to date. Xurpas’ debut was much awaited, thanks to the company’s inspiring growth story. It was the first time the company raised funds ever after bootstrapping all the way to become one of the largest in its category in terms of revenue. Xurpas plans to use the IPO proceeds for regional expansion.

See: Straight to IPO: How Philippine tech company Xurpas grew without venture capital

1. Uber’s saga in the Philippines: twists and turns

From a sting operation to hearings in Congress to regulatory public consultations, Uber’s story unfolded in the Philippines – and the plot was no different than what we saw in other markets where it operates in. The Philippine government is weighing options on how to regulate Uber after taxi operators called for a crackdown on what they called an illegal and unlicensed car-booking service. But the government seems to have taken a soft stance on Uber ever since a sting operation sparked outrage among a battalion of loyal users who took to social media to defend the embattled company. The government acknowledges that innovations like Uber are attractive alternatives for commuters who have relentlessly complained about the worsening state of the taxi industry in the country. Will the recent rape incident involving Uber in India affect Philippine regulators’ view? Let’s see.

See: Philippines weighs options for regulating Uber after public outcry against crackdown

This post The biggest Philippine tech and startup stories in 2014 appeared first on Tech in Asia.

The biggest Philippine tech and startup stories in 2014