With Uber and Grab's merger, it seemed Grab had achieved market dominance
and some fear a monopoly in Singapore's ride hailing market after an expensive war of attrition.
But shortly after news of Uber's exit broke, Ryde, a Singaporean
startup which began as a carpooling service in 2015,
announced the launch of RydeX, throwing its hat into the ride hailing ring.
As a tech startup you are supposed to go where people fear to go.
I think that is the key, and then see where we can create value there.
The business must be built on sound economics and ultimately be profitable.
we won't be burning money trying to increase our market share in a very short space of time
We will work towards profitability by not indiscriminately throwing promotions or
incentives just purely to gain market share.
We will just do those trips that make sense, is profitable for both the driver,
make sense for the rider and for the platform.
Shorter commutes has its own issues, more cancellations, lower fares.
Doesn't make economic sense to do shorter trips.
We will focus on the scheduled longer distance trips for a start,
To book a ride from ten minutes to seven days in advance.
Minimum fare is eight dollars, we also charge ten percent commission for our drivers.
RydeX will also feature surge pricing, and the ability to tip and favorite drivers.
For Grab, now it's twenty percent, Ryde, if it's ten percent,
that makes a lot of difference in the long run.
let's say I am doing a hundred Rydes,
taking an example of ten dollars as a fare, that would mean a hundred dollars difference per week.
For the pros of the scheduling system, is that we are able to to plan our routes,
plan our time to run our errands in the day.
For the eight dollars, it is more economical for the drivers,
we don't have to keep searching for different customers
but the base fare maybe is only four or five dollars.
But it will only help to a the certain extent,
because Grab's incentive was quite attractive.
It does make a difference for the income.
Because we charge drivers lower commission
ten percent commission, so we can pass back some of those savings to the riders in terms of lower fares.
On average, I expect the riders can get a five percent cash back
every trip without using any promo codes.
The cashback amount will be credited into the in-app wallet
and can then be used to offset the cost of your next ride.
There are segments of the market are sensitive to price, there are other segments are not sensitive to price.
and they are looking for service.
I am currently using Grab, partly because I heard that Uber is shutting down.
Previously I was using both, my habit would be to try Grab first, because I find it cheaper.
One day when I took a Grab from Guillemard Road to Toa Payoh, It was only three dollars
twenty cents and I was very very impressed.
I do not switch around like maybe some other consumers when there is a promo here or there.
Price is not always the first consideration, I have a toddler, can't just Uber for a child seat.
you have to pay extra, and stuff like that, that availability then plays a part in the decison.
RydePet, Ryde's carpooling option for pets is also a popular service.
I don't think that the end state will be just one ride hailing firm in the market.
The key thing I personally would like to see is
for regulation to keep the market open and contestable.
make it a fairer playing field so that any other company or startup that wants to enter
this particular space is not unfairly penalized.
For example, tying drivers with contracts to drive for a particular platform.
That's not good for the driver. He should be able to maximize his earnings across a few platforms.
Cap the fleet size in some way or another, make sure that there's orderly growth.
Certain general guidelines on predatory pricing.
You shouldn't price well below the economic cost of a particular trip.
Not to help the new entrant, but to just make sure that the playing field is level.
So that competition and economic forces can then bring greater benefit and value to the consumer.


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