Why Is Meralco Selling Its eSakay Unit For P87.4 Million?

Meralco is selling its electric vehicle unit eSakay to On-Us Solutions Inc., which operates modern jeepney operator Byahe for P84.7 million, the listed company said on Tuesday (August 15). 

eSakay is an end-to-end EV transport solutions provider that aims to modernize and electrify transport systems for the private and public sectors nationwide. The subsidiary supplies and provides multiple private sector clients with operatorship services across EV types—from eVans and eShuttles to eMotorcycles and eScooters. In 2019, it launched its inaugural public transport service, operating e-jeepneys for passengers traversing the Buendia MRT to Mandaluyong City Hall route via Jupiter Street in Makati City. It also offers e-shuttle services to private companies.

In addition to servicing commuters, eSakay also provided EV and charging infrastructure solutions for institutional customers.

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However, in April this year, Meralco announced that it is shifting some of eSakay’s services to a new unit called Movem, whose main function is to create and implement electric transportation solutions in te company’s bid to become a major player in the growing EV industry. That leaves eSakay focusing solely on public transport operations.

On-Us Solutions, meanwhile, is a startup that operates e-jeepneys across several public transport routes in Metro Manila and other parts of Luzon.

Metro Pacific Tollways Corporation, a company chaired by Manny Pangilinan, owns a minority stake in On-Us Solutions through an investment by its mobility services unit MPT Mobility Corp. Pangilinan is also chairman and CEO of Meralco, which is the country’s leading power distribution company.

By selling eSakay, the MVP group seems to be consolidating its green mobility initiatives through On-Us, leaving Meralco to focus on its core business of power distribution.

On-Us, meanwhile, is keen on growing its e-jeepney fleet to 500 vehicles plying up to 20 to 30 routes in the next two to three years.