Comparative Profitability Analysis of Electric, Pedicab, and Gasoline-Fuelled Tricycles

Lady Fritz C. Sarsalejo, Lemuel S. Preciados


This study compared the profitability of the three transport service enterprises namely electric tricycle, gasoline-fuelled tricycle, and pedicab. These three enterprises are widely used as transportation facilities and serve as a means of livelihood for low-income drivers of the municipality of Isabel, Leyte. In assessing the profitability, the gross profit analysis and discounting cash flow analysis which includes Net Present Value (NPV), Internal Rate of Return(IRR),Benefit-CostRatio(BCR),and payback period were used. Based on the results of the gross profit analysis and the discounting flow analysis of a random sample of 177 drivers, positive returns of investment was experienced. Gasoline-fuelled vehicle has the largest net present values indicating highest financial profitability. Pedicab,with its lowest cost of investment and the lowest operating cost, generates highest benefit-cost ratios and lowest pay-back period. The electric-tricycle,with its highest purchase cost and highest maintenance cost, resulted in lowest positive returns compared with other two vehicles. However, these indicators of profitability only considered financial returns,and exclude the intangible benefits (i.e. the environmental benefits and other social benefits). This research highlighted the need to encourage adoption of vehicles that is economically profitable,but also environment-friendly vehicles. The results may also provide insights for local government initiatives to improve livelihood opportunities at the same time provide healthier environment for the communities.


Investment; Benefit-cost analysis; Discounting cash flow


AsianDevelopmentBank(2012). Philippines: Transport sector assessment, strategy, androadmap (CompanyReport).

Balaria, F., Pascual M., Santos, M., Ortiz, A., Gabriel, A., Luz, T., & Mangahas, S. (2017). Sustainability of e-trike as alternative mode of public transportation system: The case of Cabanatuan City, Philippines. Open Journal of Civil Engineering,7,362-377.

Campbell,H.&Brown,R.(2003). Benefit-cost analysis: Financial and economic appraisal using spreadsheets. New York: CambridgeUniversityPress.

Guillen, D. & Guzon, B. (2000). Towards a sustainable transportation environment: The case of pedicabs and cycling in the Philippines. Retrieved from Towards-a-sustainable-transportation-envi ronment.-The-case-of-Pedicabs-and-cyclin g-in-the-Philippines-Brian-GOZUN-MarieDanielle-GUILLEN.pdf

Gullen, M. D. V., Ishida, H., Okamoto, N. & Tsutsumi, M. (2007). Public transport policies and the road-based public transport service in developing countries: The case of indigenous public transport modesinDavaoCity,Philippines. The7th International Conference of Eastern Asia SocietyforTransportationStudies,18.

Gustafsson T., & Johanson A. (2015). Comparison between electric vehicles and internal combustion engine vehicles fueled by electro fuels [Masters thesis]. Chalmers University of Technology, Gothenburg,Sweden.

Harrison, S. & Herbohn, J. (2008). Financial and economic research methods. ACIAR Training Manual 1, 86 pp. Meredith Errington. ISBN:9781921434280.

Jacobsen,P.(2003). Safetyinnumbers: More walkers and bicyclists, safer walking and bicycling. InjuryPrevention,9,205-209.

Kokaz, K. & Rogers, P. (2002). Urban transportation planning for air quality management: Case study in Delhi, India, of role of social and economic costs in welfare maximization of mobility choice. Transportation Research Record Journal

of the Transportation Research Board, 1817,42-49.

Manasan, R.G. & Mercado, R.G. (1999) Governance and urban development: Case study of Metro Manila. Makati: Philippine Institute for Development Studies

Repogle, M. (1992). Bicycles and rickshaws in Asian cities: Issues and strategies. Transportation Research Record 1372, Transportation Research Board. Washington D.C.: National Research Council,pp.76-84.

Taofeek, G.K. & Afolabi, O.J. (2017) An assessment of motorcycle operation in Ado-Odo Ota local government area of Ogun State. Science, Technology & PublicPolicy,1(3),41-46.

Trading Economics, (2018). Philippines GDP fromTransport2008-2018. Retrievedfrom dp-from-transport

Full Text: JEHRD001


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.