Two firms unveil ride-hailing plans
New private-hire services to enter market this year
Singaporeans can expect more choice for private-hire services.
Local ride-sharing company Ryde said yesterday its private-hire RydeX service will begin operations on May 2.
Meanwhile, Mass Vehicle Ledger (MVL), a local offshoot of a South Korean company, also told the media yesterday that it will be launching its ride-hailing service in the third quarter.
These come in the wake of the recent Grab-Uber merger, with both Ryde and MVL hoping to acquire 20 per cent to 25 per cent of market share.
Ryde's chief executive officer, Mr Terence Zou, said that Ryde wants "to provide an alternative to drivers and riders".
He added that "with Uber's exit, it was an opportune time to go to market faster".
MVL said: "With the recent consolidation of two major players in the mobility ecosystem (Grab and Uber), many fear the lack of competition will once again drive up transportation prices in Singapore."
However, the two companies' offerings are different from Grab in various ways.
Unlike Grab, RydeX offers scheduled rides, not on-demand rides. This allows users to book a private-hire car from 10 minutes to 7 days in advance. The app also allows users to request for a specific driver and gives the option to tip the driver.
It will take a 10 per cent commission from drivers, compared to Grab's 20 per cent.
MVL will offer a ride-hailing service, as well as data collection, for example driving data that indicates a driver's safety.
Drivers on MVL's platform can also work for other companies, such as Grab and Ryde, and the company says prices will be lower for riders, as it will take no commission from drivers.
Users of the app will get points when they leave reviews for their riders or drivers, and these points can be converted into MVL tokens, which can then be cashed out through a coin exchange service.
Singapore University of Social Sciences transport economist Walter Theseira was sceptical about these services gaining significant market share.
He said: "Chances of them meeting their goal of 20 per cent to 25 per cent market share is low, unless they are much better capitalised than we are aware of.
"Neither has announced any big backers, and without this financial firepower, they will struggle."
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