Booking a taxi, car, or motorbike using a ride-hailing service has become an integral part of daily life in Southeast Asia. 53 percent of the poll participants reported using ride-hailing applications at some point. The largest percentages of users were found in Singapore (64%), followed by Vietnam (69%) and Malaysia.
Malaysia (41%) and Thailand (approximately two in five users) have the lowest user penetration rates (38 percent ). Demand has been impacted in some locations by transient variables, like Thailand's legislative constraints and Malaysia's somewhat stricter movement control procedures.
Which ride-hailing company dominates the area?
With 75% of users choosing Grab as their most often used app, Grab is the undisputed market leader when it comes to brand recognition among ride-hailing applications in all six markets. With 13 percent, Gojek is well behind in second place.
The Philippines (94%) and Malaysia (94%) have Grab's largest market shares (91 percent ). In three other markets, Grab outperforms its nearest competitor by a factor of six or more. For instance, Grab outpaces Gojek in Vietnam (73 percent to 10 percent ).
Except for Indonesia, domestic industry participants, even those with a lengthy history, have notably lagged behind. Grab (74 percent) now has a huge lead over Comfort in Singapore (12 percent ). The difference is much greater in Thailand, where Grab is at 80% and LINE Taxi is stuck at 11%.
Gojek in Indonesia is the sole notable rival to Grab's dominance. Gojek is not far behind Grab in terms of usage, which is at 43%. Gojek may have benefited from things like a longer track record domestically and "national pride" among customers, but Grab has shown to be a strong rival.
Blackbox noted that Gojek is the only operator in these six nations able to secure a sizable, albeit still modest, market share, securing 11% in Singapore and 10% in Vietnam.
Why did Grab achieve such great success in Southeast Asia?
Grab has been able to grow despite competition from long-standing stalwarts like Comfort in Singapore and other well-established players thanks to its inventive application of information technology and big data, as well as related factors like commitment to customer service and strong investor backing.
Grab purchased Uber's Southeast Asian operations after a brief battle for market share with its US-based rival Uber, with Uber now owning a minority part in the business. Grab said in 2019 that it was opening a second headquarters in Jakarta, indicating its serious plans to dominate the entire region.
The pandemic appears to have given the worldwide digital disruption—which had already propelled Grab on a trajectory of exponential growth—a boost. It has added 600,000 new merchants from Southeast Asia since 2020.
Grab, a ride-hailing company based in Singapore, has announced that it would replace its fleet with low-emission vehicles by 2030 in order to reach carbon neutrality by 2040.
Grab's action comes after that of its main rival GoTo, which was created by the union of Indonesia's Gojek and a regional e-commerce platform called Tokopedia. One of the first startups in the area to publicly disclose its environmental sustainability objectives was Gojek. It committed to electrifying its whole fleet by 2030 in April of last year.
The initiatives coincide with government deadlines for getting rid of fossil fuel-powered cars. By 2040, Singapore wants to phase out internal combustion engines. In Indonesia, only EV motorbikes will be marketed starting in 2040, and starting in 2050, all new automobiles will be EVs.
Source: Blackbox.com.sg, Asia.Nikkei.com