Wednesday, October 8, 2014

Top 5 Reasons why Grab Easy Uber Hailo Taxi bookings are picking up in Singapore

Take a look at the above slideshare for the top 30 online cab aggregators around the world according to Valoriser Consultants, online mobile taxi booking apps have taken the world by storm by solving a basic demand and supply problem between passengers and taxis. Indeed, of late, since late last year (2013), regional and global 3rd party taxi booking mobile O2O apps (GrabTaxi, EasyTaxi, UberTaxi and soon Hailo) have been jostling amongst the incumbent taxi providers' booking services (e.g. ComfortDelgro, SMRT) and been the rage in the Singapore taxi booking scene. It's not that taxi booking through phone calls to the call centres of the incumbent taxi service providers or via their respective apps have not been available. It's just that the supply, availability and fulfilment of booking jobs have not met with the growing demand.

Here are my view of the 5 reasons why Grab Easy Uber Hailo Taxis are trending in the busy and sleepless Singapore city.

1. Singapore is a regional hub in Southeast Asia

2. Viable Market with an active daily 1,000,000 taxi riderships base
  • Anecdotally about 15% are through bookings today.
  • Singapore consumers are used to mobile commerce - more than 15% of ecommerce (think Groupon like daily deals) are purchased via the mobile smartphones with credit card payment.

3. Inconvenient payment - non-acceptance of Visa credit cards

4. Underserved taxi booking

5. Disgruntled supply base about 30,000 taxis and more than 40,000 drivers
  • A growing number of taxi drivers here are exploring alternatives, i.e. more than 1 3rd party taxi booking app these days - disintermediation and choice.
  • Taxi drivers are looking for easy non-fuss solutions which benefit their livelihood - bigger app screens, intuitive user experience, quicker acknowledgment of bookings, convenient payment and acknowledgement receipts, choice of solutions and so on.
  • Just hop into a taxi and start a conversation with your friendly taxi driver, and you will learn lots!

So, here are my top 5 reasons why Grab Easy Uber Hailo (virtual fleet) Taxis are picking up in Singapore. The market is really heating up in the taxi booking scene - first with GrabTaxi and EasyTaxi earlier this year and now with UberTaxi since June '14 and Hailo soon to join in the fray. To add, there is also a fifth local player, MoobiTaxi who works with ComfortDelgro and SMRT taxis.
  • What will the future hold for taxi booking market space?
  • Will we see another taxi service provider to increase the current 30,000 physical taxi fleet?
  • Will another international player like GetTaxi enter the Singapore market?

Let's look forward to better user experiences for both the taxi drivers and taxi passengers which I am sure we will see lots more innovation in this daily consumer lifestyle habit.

Can you connect with the above reasons from your experiences in Singapore on the taxi booking scene? Love to hear from you ...

Nelson Wee

1 comment:

Rajjyd said...

Great post, Nelson. All the arguments about disruption definitely hold here, and the consumer will win with either a greater overall experience or a price war. Taxi riding has been a pain point for just about everyone whom you start a conversation with.

I don't think pricing is a key focal point for most people in Singapore, but just some basics that needed to be solved for and have not been for a long time (a taxi arriving when it's supposed to, clean, comfortable ride, getting to my destination as i would expect it, convenience of payment). Not too much to ask for.......