According to a study from Malaysian IPrices, a leading platform for online shoppers across seven Asian markets (Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam), stakes are now high for the ride-hailing market in Southeast Asia.
Two big competitors, predominantly Grab and Uber, are competing to gain majority market share as the sector is expected to become a $13 billion industry by 2025. Since its inception 4 years ago, Grab has created a strong foothold in Southeast Asia with funding support of $750 million by Softbank in September 2016 and has great plans to advance further in the region.
On the other hand, Uber’s recent move of selling off its China unit to DiDi in August 2016 is a clear indication that they are focusing their expansion efforts in Southeast Asia as well. This is apparent as Uber has been doubling down on resources, staffing and technology.
While this sounds great for consumers, the ride-hailing industry is getting intensively competitive in Southeast Asia.As the Malaysian cabinet has given its approval to legalize ride sharing services in the country, the transportation sector in the country is slated to see further developments. Ride sharing apps in most countries in SEA remains illegal and Malaysia is among the few who has decided to embrace the new transportation service. IPrice group study compares and identifies the cheapest mode of transportation between the two ride-hailing giants with local taxis in each major Southeast Asian country. The research takes in account on price differences by Grab, Uber and local taxis based on various price components and price points.
Uber comes as the cheapest way of travel in Indonesia, Malaysia, Thailand and Vietnam while GrabCar came first in the Philippines and Singapore. Taxis remain of course the most expensive to ride in all countries. The cheapest ride-hailing is to be found in Indonesia and the most expensive is to be found in Singapore.