Driving for Grab or the other private hire service providers in Singapore? For Grab drivers, fret not as there’s now another service provider coming up. Go-Jek will be launching their ride-hailing services in Singapore this November! CCCS has issued remedies allowing the freedom for Grab drivers to drive and use any ride-hailing platforms, removal of any exclusive agreements with any taxi fleet in Singapore and more terms to lessen the impact of the acquisition.
Original Featured Image Source: Vulcanpost
In June, the Competition and Consumer Commission of Singapore (CCCS) has issued an infringement decision with regards to the acquisition of Uber’s operations in Southeast Asia by Grab. Investigation works are carried out through feedbacks from the public, stakeholders and industry players. According to CCCS, Grab now holds 80% of the ride-hailing market share in Singapore with Uber’s exit in March 2018. The authority has also receive numerous complaints from the riders and drivers on fare and commission increment. As a result, Grab and Uber was fined a total of $13 million for infringing section 54 of the Competition Act, which prohibits mergers that could substantial lessen competition in the Singapore market. According to the latest news, Grab has decided to pay the penalty and abide to the decision while Uber Technologies will be appealing to the decision by CCCS. With regards to Go-Jek entry to Singapore’s private hire market, Uber has pointed out that Go-Jek will be a formidable competitor. For both riders and private hire drivers, isn’t this a piece of good news? Have you ever heard about Go-Jek?
Image Source: Singapore Business Review
Who is Go-Jek?
Founded in 2010, Indonesia based ride-hailing and the logistic company is valued at $5 billion as of February 2018. Operating a fleet exceeding 1 million drivers across Indonesia, the company has announced its US$500 million investment plan for expansion starting with 4 Southeast Asian countries: Vietnam (launched in Sep 2018), Philippines, Thailand and Singapore. Apart from the preparation works for their November launch in Singapore, Go-Jek is also gathering drivers in Thailand and seeking permits to operate ride-hailing services in the Philippines currently.
Image Source: Nikkei Asian Review
What do they provide?
Just like Grab’s vision to become ‘Your Everyday App’, Go-Jek’s super app offers a variety of on-demand services back in Indonesia. Apart from the ride-hailing services which will be coming to Singapore in November, will all these be coming along as well?
Image Source: Firstlane
- GO-RIDE: motorcycle taxi services
- GO-CAR: ride-hailing services
- GO-Bluebird: taxi hailing services(in collaboration with Indonesia taxi operator)
- GO-FOOD: food delivery services
- GO-FOOD FESTIVAL: offline food-court chain selling food and beverages from GO-FOOD merchants
- GO-MART: app-based groceries shopping at supermarkets listed in the GO-JEK app
- GO-SHOP: groceries and items purchase from non-GO-MART merchants
- GO-SEND: courier services for small items and documents
- GO-BOX: courier services for larger items using pickup trucks, single-axle trucks, and single-axle box trucks
- GO-MED: medicine delivery services
- GO-AUTO: auto care services (maintenance, car wash and repair of vehicles)
- GO-PAY: e-wallet services
- GO-PULSA: phone credit top-up services
- GO-BILLS: electricity bills & token purchase, insurance paying services
- GO-MASSAGE: massage services
- GO-CLEAN: cleaning services
- GO-GLAM: styling services
- GO-POINTS: loyalty programs for points earned through every transaction done in GO-JEK app
- GO-PLAY: Video streaming for online content business
- GO-STUDIO: Video Production House
Singapore Private Hire Industry
According to the non-exclusivity clause by Competition and Consumer Commission of Singapore’s (CCCS), Go-Jek is free to get in touch with the estimated pool of 70,000 Grab drivers As of now, preparation for drivers’ recruitment for the driving platform has started. Announced in October, Go-Jek will be partnering with 6 car rental companies in Singapore for drivers who do not have their own vehicle. However, it still remains unclear if the drivers of Go-Jek will be allowed to drive for Grab platforms as well with the rented car from their exclusive partners.
Apart from Grab and Go-Jek, there’re various companies who entered the Singapore private hire market in 2018. Let’s take a look at what the ride-hailing options available.
1. RYDE: Started as a carpooling app since 2014, Ryde has launched and is operating rail hailing/private hire services, RydeX in Singapore since 2 May. Comparing to the 20% commission of each Grab ride, RydeX will only take a 10% commission from each ride. There’s no penalty for imposed for trip cancellation but driver’s profile will be flagged for frequent cancellation. Apart from RydeX, there are various riding options like RydeXL/EXEC for bigger vehicles, Rydepool (sharing), RydePet, RydeSchool and RydeSend as well. Additional features like tipping and choosing of preferred drivers are also available in the application.
2. TADA: As a subsidiary of easi6 (South Korean tech startup that offers transport services and car rental services in Asia), the private hire application TADA was launched by the Mass Vehicle Ledger (MVL) Foundation on 26 July. MVL runs a point system for both riders and the drivers when additional trip data is provided. These points can then be exchanged into cryptocurrencies and converted into cash or in exchange for goods and services at any business that accepts such currencies. They are the first ride-hailing application that incorporates blockchain technology.
3. FILO: Launched in May, FILO Technologies collects a 12% commission, capped at $400 per month from its drivers. Following the same dynamic pricing as Grab, fares will fluctuate and increase based on demand.
4. Kardi – Launched in June, the Singapore based ride-hailing application also collects a 12% commission from their drivers. Assuring drivers of their fast payout, fares will be credited to their bank accounts every 48 hours. Just like the other application, Kardi will also be adapting the dynamic surge pricing with no carpooling or sharing option. Apart from the application, riders will also be able to book a ride via their website. Kardi has also teamed up with Jugnoo in August for tech expertise and engineer support with a revenue sharing model to compete with big players in the private hire market. Jugnoo is an India based ride-hailing firm (operating auto-rickshaw hailing services) which debuted in May and exited the Singapore private hire market after 3 months.
5. URGE: Launched in September, the ride-hailing application URGE operates its business slightly in a different way by offering drivers basic salary with CPF contributions, employee benefits, incentives for target trips and flexible working hours. Petrol and car rental cost will be bear by the company as well. For riders, there’ll be no surge pricing during the peak period and high demand period. Like Grab, they also offer courier, logistics and food delivery services apart from private hire services.
6. Dacsee (Coming Soon): Founded in 2017, the Decentralized Alternative Cabs Serving & Empowering Everyone (DACSEE) from Malaysia will also be launching their services in the 2nd quarter of 2019 according to ST. Similarly to TADA, they are also a blockchain based ride-hailing application.
With additional pressure and displeased drivers in the private hire market, will there be another round of price war and incentives for drivers’ recruitment coming up between the two giants?
In lieu of Go-Jek launch in Singapore, Grab has announced new initiatives such as the launch of Grab Express; courier services and a new incentive program for their drivers which will kick start on 29 October 2018. Their new Income Guarantee Programme will ensure drivers of fixed gross monthly income according to the number of trips made per week. However, the fine print of the program stated that drivers will need to have an acceptance rate above 90%, cancellation rate below 10% and driver rating minimum 4.3 in order to be eligible for the program. To all the Grab drivers out there, does this entice you to continue staying on Grab’s board?
Image Source: Firstlane
After years of fierce competition with Uber, Grab has successfully acquired the Southeast Asian business of its rival, strengthening and dominating its position in the region, evolving into an upstart business within 6 years. Apart from the private hire (ride-hailing) services, Grab and Go-Jek have also diversified in various industries like technology (data analysis, e-payment), financial and lifestyle services. With Grab dominance in Southeast Asia, will Go-Jek continue to flourish? Do stay tuned and anticipate Go-Jek’s launch for more details on the fares, drivers’ benefit and commission.
*Updated on 30 Oct
Go-Jek has launch pre-registration portal for drivers in Singapore. Do visit https://www.go-jek.com/sg/join/ for drivers registration.
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