ASIATODAY.ID, SINGAPORE – Ride-hailing apps have disrupted urban transportation in cities all around the world, with millions of commuters now relying on them to order rides to their chosen destinations whether it be for work or recreation.
According to Blackbox’s newest study
on the sector, ride-hailing services—booking a taxi, car, or motorbike through an app—are not only here to stay but also grow in Southeast Asia (SEA).
The ride-hailing market in SEA, which
included online transport and food delivery, amounted to nearly US$13 billion in 2021. This is expected to more than triple by 2025, with forecasts projecting over US$42 billion across the region.
Covering Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, the study found that ride-hailing services have become an essential part of everyday life in SEA. More than half of the respondents (53%) had used ride-hailing apps during the survey period, with Vietnam (69%) and Singapore (64%) recording the highest proportion of users, and Malaysia (41%) and Thailand (38%) the lowest.
As COVID-19 restrictions are gradually relaxed, usage of ride-hailing apps look set to increase across all six markets surveyed.
Highest enthusiasm is recorded in Thailand, with 76% of respondents indicating a desire to boost their usage of such services. This makes Thailand, which recorded the lowest previous usage (38%), the ASEAN market with the highest pent-up demand and potential. In second spot is Vietnam (69%), which is already the market with the highest level of previous usage (69%).
Despite a similarly high level of previous usage (64%), Singapore has the lowest forecast of future growth at 37%. Singapore’s move towards a car-lite society backed by greater societal support for eco-friendly shifts to help address climate change are believed to be some of the contributing factors for this trend.
Grab leads in Southeast Asia
The study found Grab to be the ride-hailing leader across all six markets, with 75% of users from the survey selecting Grab as their most often used app for ride-hailing. Gojek—Grab’s only serious regional ride-hailing competitor—came in a distant second place at 13%.
Grab’s lead is strongest in Malaysia (94%) and Philippines (91%). In three other markets, Grab has a lead of six-fold or more over the closest challenger. For example, in Vietnam, 73% of users picked Grab as their most often used ride-hailing app, compared to 10% who chose Gojek.
In Singapore, Grab led at 74%, with Comfort and Gojek coming in second and third at 12% and 11% respectively. In Thailand, the gap is larger, with Grab at 80% and LINE Taxi at 11%.
In Indonesia, Gojek has proved a more formidable competitor for Grab. With 43% of Indonesian users selecting Gojek as their most often used ride-hailing app, Gojek lags but is not far behind Grab’s current lead (52%).
In terms of brand preference after the pandemic, Grab is the runaway leader in all Southeast Asian markets except Indonesia. Overall, 78% picked Grab as the most preferred app to use post-pandemic for four-wheel ride-hailing.
In second place is Gojek, well behind at just 9%, with other players holding negligible scores. Grab’s leadership in brand preference was most significant in Malaysia (94%) and Philippines (91%).
Only in Indonesia is there a contender of note against Grab (Gojek at 40% vs. Grab 54%). Gojek also has a minor foothold in Singapore (Gojek at 13%, Grab 72%).
Commenting on the survey findings, David Black, CEO of Blackbox Research, said: “The findings reveal both a rich and still growing appetite for ride-hailing services in Southeast Asia. The ongoing growth in demand will help propel the region forward once the pandemic starts to finally ebb. Grab remains the one to beat in this space for now and the foreseeable future. While Gojek has done well to hang onto the coattails of Grab in its Indonesian home ground, it is hard to see it mounting a serious challenge elsewhere in Southeast Asia in the near term.” (AT Network)