https://www.todayonline.com/singapore/lta-reach-out-go-jek-jugnoo-ride-hailing-industry-heats
LTA to ‘reach out’ to Go-Jek, Jugnoo as ride-hailing industry heats up
By Kenneth Cheng
TODAY file photo
Go-Jek is rumoured to be eyeing a partnership with Singapore’s largest taxi company ComfortDelGro.
Published30 April, 2018
Updated 30 April, 2018
SINGAPORE — With two new entrants, India’s Jugnoo and Go-Jek from Indonesia, set to spice up the ride-hailing market here, the Land Transport Authority (LTA) said on Monday (April 30) it will reach out to the two firms to “understand their operations better”.
This was after news emerged that Jugnoo plans to launch here in May, while Go-Jek is said to be planning to expand its services to Singapore, the Philippines, Thailand and Vietnam.
Go-Jek is also rumoured to be eyeing a partnership with Singapore’s largest taxi company ComfortDelGro, though both firms have remained tight-lipped.
ComfortDelGro’s tie-up with Uber remains in limbo after the two companies sought an extension to the Competition and Consumer Commission of Singapore’s (CCCS) Monday deadline to submit outstanding information for the review of the deal.
The taxi operator, which has about 13,000 cabs on its books, currently has a tie-up with homegrown app Ryde which allows users to book its cabs.
Jugnoo, which uses auto rickshaws in India, is set to roll out its private-hire car service here on Tuesday. Using a “reverse-bidding” pricing system, it will see drivers placing bids for rides, and riders will select a bid based on a driver’s rating, bid price and waiting time. Jugnoo did not respond to TODAY’s queries.
An LTA spokesperson reiterated on Monday that all prospective private-hire car booking-service operators have to comply with its regulatory requirements before they are allowed to operate in Singapore.
“We are also reviewing the regulatory structure of the point-to-point industry, to ensure that the industry remains open and contestable in the long term and no single operator dominates the market, to the detriment of commuters and drivers,” said the spokesperson.
ComfortDelGro’s proposed acquisition of a 51 per cent stake in Lion City Rentals — Uber’s vehicle-rental subsidiary in Singapore — appears to have stalled.
The CCCS, which is reviewing the S$642 million deal, told TODAY on Monday that the parties have requested “a further time extension to submit the necessary information”.
The competition watchdog had previously given the parties until March 5 to submit further information, and then extended the deadline to the end of April.
This time, the request came after the two firms failed to supply “complete information” to allow the CCCS to move on to the second stage of its review, after the initial phase could not “conclusively determine” competition issues would not arise from the agreement.
Lion City Rentals was not part of the deal announced by Grab last month, when the ride-hailing firm said it was buying out Uber’s operations in South-east Asia.
When queried on the reason for the extension, ComfortDelGro spokesperson Tammy Tan said the company was unable to comment on the agreement owing to “confidentiality clauses”.
But the ComfortDelGro-Uber deal is not dead in the water, as transport analysts told TODAY that it could be kept alive by the firms to facilitate Go-Jek’s entry into the market.
Transport economist Walter Theseira said the only way the deal could proceed is “if there is another well-capitalised entrant (such as Go-Jek) that wants an existing fleet of vehicles”.
However, he questioned why Uber would go ahead with the deal, which was announced last December, more than three months before its retreat from the region.
He added that this would equate to giving Grab’s competitors, ComfortDelGro and Go-Jek, “ammunition”, especially as Uber now has a stake in Grab.
Urban transport expert Park Byung Joon believed that ComfortDelGro was still mulling the deal with Uber, given that the American firm’s retreat was not on the radar when it was mooted.
As part of the deal, ComfortDelGro drivers could take on bookings via Uber’s app, said Dr Park.
He added: “Now that Uber is out, it means they’re just (left with) rental services for private-hire drivers.”
ComfortDelGro should stick with the deal if it still sees potential in renting cars to private-hire car drivers. Ultimately, though, Dr Park said it boils down to whether the business can be profitable.
“If the answer is no, then they shouldn’t continue,” he added.
https://www.straitstimes.com/singapore/transport/ride-hailing-firm-go-jek-to-launch-in-singapore
Ride-hailing firm Go-Jek to launch in Singapore
A Go-Jek ad at a railway station in Jakarta. The Indonesian ride-hailing firm said it would spread its services to the Philippines, Singapore, Thailand and Vietnam in the next few months, without specifying any dates.ST PHOTO: AGENCE FRANCE-PRESSE
Published
May 25, 2018, 5:00 am SGT
Facebook Twitter Email
Zhaki Abdullah
Indonesian ride-hailing start-up Go-Jek put an end to several months of speculation yesterday when it confirmed it would expand into four markets in the region, including Singapore, as part of a US$500 million (S$671 million) growth plan.
Go-Jek, valued at about $5 billion, said it would spread its services to the Philippines, Singapore, Thailand and Vietnam in the next few months, without specifying any dates.
Its statement also said that it aims to take its multi-service business model eventually into the four countries.
Go-Jek's services go beyond providing just private-hire vehicles in Indonesia.
They include a variety of concierge services, such as food and grocery deliveries as well as cleaning and massage services.
The company's expansion will pit it against Singapore-based Grab, the sole major ride-hailing operator in the region following Uber's exit from South-east Asia in March.
Grab operates in eight countries: Singapore, Malaysia, Indonesia, Thailand, Vietnam, Cambodia, Myanmar and the Philippines.
Go-Jek president Andre Soelistyo said the company has been looking at overseas expansion for some time, and its latest round of fund-raising has put it in the "stron-gest possible position" to achieve its ambition.
Investors that have provided funds include American tech giant Google, Singapore's Temasek Holdings and China's Tencent.
Go-Jek, which opened a data science office in Singapore in January last year,declined to say when it would launch its services in Singapore when contacted.
The company's chief executive, Mr Nadiem Makarim, said it would would seek local partners in each country to benefit from their "deep and varied market knowledge".
The Land Transport Authority said it had reached out to Go-Jekregarding local regulations, such as requiring drivers to be licensed and cars to have private-hire decals affixed.
Last month, Go-Jek was reportedly in talks with Singapore taxi giant ComfortDelGro on a possible partnership, but both have declined to comment.
Since Uber's departure, firms like Singaporean carpooling platform Ryde have announced plans to enter the private-hire sector.
But they are unlikely to rival Grab in a big way because of their relatively small size, said observers.
Go-Jek's entry, however, would bring some competition into the Singapore market, said Mr Ang Hin Kee, executive adviser to the National Private Hire Vehicles Association.
But National University of Singapore transport lecturer Lee Der Horng noted that Grab has an edge, being well-established in the Singapore market.
Before Uber left, Grab and the United States-based companycompeted fiercely in Singapore to gain market share, giving passengers big discounts and drivers generous incentives.
Earlier this month, Grab said it is rolling back the incentives.
But Dr Lee believed Go-Jek's entry could see the return of the incentives as both companies battle for commuters and drivers.
However, he cast doubt on the prospect of Go-Jek's other services, such as food and grocery delivery.
Noting that several businesses already offer them, he said: "How many such companies is the sector really able to accommodate?"
A version of this article appeared in the print edition of The Straits Times on May 25, 2018, with the headline 'Ride-hailing firm Go-Jek to launch in Singapore'. Print Edition | Subscribe
LTA to ‘reach out’ to Go-Jek, Jugnoo as ride-hailing industry heats up
By Kenneth Cheng
TODAY file photo
Go-Jek is rumoured to be eyeing a partnership with Singapore’s largest taxi company ComfortDelGro.
Published30 April, 2018
Updated 30 April, 2018
SINGAPORE — With two new entrants, India’s Jugnoo and Go-Jek from Indonesia, set to spice up the ride-hailing market here, the Land Transport Authority (LTA) said on Monday (April 30) it will reach out to the two firms to “understand their operations better”.
This was after news emerged that Jugnoo plans to launch here in May, while Go-Jek is said to be planning to expand its services to Singapore, the Philippines, Thailand and Vietnam.
Go-Jek is also rumoured to be eyeing a partnership with Singapore’s largest taxi company ComfortDelGro, though both firms have remained tight-lipped.
ComfortDelGro’s tie-up with Uber remains in limbo after the two companies sought an extension to the Competition and Consumer Commission of Singapore’s (CCCS) Monday deadline to submit outstanding information for the review of the deal.
The taxi operator, which has about 13,000 cabs on its books, currently has a tie-up with homegrown app Ryde which allows users to book its cabs.
Jugnoo, which uses auto rickshaws in India, is set to roll out its private-hire car service here on Tuesday. Using a “reverse-bidding” pricing system, it will see drivers placing bids for rides, and riders will select a bid based on a driver’s rating, bid price and waiting time. Jugnoo did not respond to TODAY’s queries.
An LTA spokesperson reiterated on Monday that all prospective private-hire car booking-service operators have to comply with its regulatory requirements before they are allowed to operate in Singapore.
“We are also reviewing the regulatory structure of the point-to-point industry, to ensure that the industry remains open and contestable in the long term and no single operator dominates the market, to the detriment of commuters and drivers,” said the spokesperson.
ComfortDelGro’s proposed acquisition of a 51 per cent stake in Lion City Rentals — Uber’s vehicle-rental subsidiary in Singapore — appears to have stalled.
The CCCS, which is reviewing the S$642 million deal, told TODAY on Monday that the parties have requested “a further time extension to submit the necessary information”.
The competition watchdog had previously given the parties until March 5 to submit further information, and then extended the deadline to the end of April.
This time, the request came after the two firms failed to supply “complete information” to allow the CCCS to move on to the second stage of its review, after the initial phase could not “conclusively determine” competition issues would not arise from the agreement.
Lion City Rentals was not part of the deal announced by Grab last month, when the ride-hailing firm said it was buying out Uber’s operations in South-east Asia.
When queried on the reason for the extension, ComfortDelGro spokesperson Tammy Tan said the company was unable to comment on the agreement owing to “confidentiality clauses”.
But the ComfortDelGro-Uber deal is not dead in the water, as transport analysts told TODAY that it could be kept alive by the firms to facilitate Go-Jek’s entry into the market.
Transport economist Walter Theseira said the only way the deal could proceed is “if there is another well-capitalised entrant (such as Go-Jek) that wants an existing fleet of vehicles”.
However, he questioned why Uber would go ahead with the deal, which was announced last December, more than three months before its retreat from the region.
He added that this would equate to giving Grab’s competitors, ComfortDelGro and Go-Jek, “ammunition”, especially as Uber now has a stake in Grab.
Urban transport expert Park Byung Joon believed that ComfortDelGro was still mulling the deal with Uber, given that the American firm’s retreat was not on the radar when it was mooted.
As part of the deal, ComfortDelGro drivers could take on bookings via Uber’s app, said Dr Park.
He added: “Now that Uber is out, it means they’re just (left with) rental services for private-hire drivers.”
ComfortDelGro should stick with the deal if it still sees potential in renting cars to private-hire car drivers. Ultimately, though, Dr Park said it boils down to whether the business can be profitable.
“If the answer is no, then they shouldn’t continue,” he added.
https://www.straitstimes.com/singapore/transport/ride-hailing-firm-go-jek-to-launch-in-singapore
Ride-hailing firm Go-Jek to launch in Singapore
A Go-Jek ad at a railway station in Jakarta. The Indonesian ride-hailing firm said it would spread its services to the Philippines, Singapore, Thailand and Vietnam in the next few months, without specifying any dates.ST PHOTO: AGENCE FRANCE-PRESSE
Published
May 25, 2018, 5:00 am SGT
Facebook Twitter Email
Zhaki Abdullah
Indonesian ride-hailing start-up Go-Jek put an end to several months of speculation yesterday when it confirmed it would expand into four markets in the region, including Singapore, as part of a US$500 million (S$671 million) growth plan.
Go-Jek, valued at about $5 billion, said it would spread its services to the Philippines, Singapore, Thailand and Vietnam in the next few months, without specifying any dates.
Its statement also said that it aims to take its multi-service business model eventually into the four countries.
Go-Jek's services go beyond providing just private-hire vehicles in Indonesia.
They include a variety of concierge services, such as food and grocery deliveries as well as cleaning and massage services.
The company's expansion will pit it against Singapore-based Grab, the sole major ride-hailing operator in the region following Uber's exit from South-east Asia in March.
Grab operates in eight countries: Singapore, Malaysia, Indonesia, Thailand, Vietnam, Cambodia, Myanmar and the Philippines.
Go-Jek president Andre Soelistyo said the company has been looking at overseas expansion for some time, and its latest round of fund-raising has put it in the "stron-gest possible position" to achieve its ambition.
Investors that have provided funds include American tech giant Google, Singapore's Temasek Holdings and China's Tencent.
Go-Jek, which opened a data science office in Singapore in January last year,declined to say when it would launch its services in Singapore when contacted.
The company's chief executive, Mr Nadiem Makarim, said it would would seek local partners in each country to benefit from their "deep and varied market knowledge".
The Land Transport Authority said it had reached out to Go-Jekregarding local regulations, such as requiring drivers to be licensed and cars to have private-hire decals affixed.
Last month, Go-Jek was reportedly in talks with Singapore taxi giant ComfortDelGro on a possible partnership, but both have declined to comment.
Since Uber's departure, firms like Singaporean carpooling platform Ryde have announced plans to enter the private-hire sector.
But they are unlikely to rival Grab in a big way because of their relatively small size, said observers.
Go-Jek's entry, however, would bring some competition into the Singapore market, said Mr Ang Hin Kee, executive adviser to the National Private Hire Vehicles Association.
But National University of Singapore transport lecturer Lee Der Horng noted that Grab has an edge, being well-established in the Singapore market.
Before Uber left, Grab and the United States-based companycompeted fiercely in Singapore to gain market share, giving passengers big discounts and drivers generous incentives.
Earlier this month, Grab said it is rolling back the incentives.
But Dr Lee believed Go-Jek's entry could see the return of the incentives as both companies battle for commuters and drivers.
However, he cast doubt on the prospect of Go-Jek's other services, such as food and grocery delivery.
Noting that several businesses already offer them, he said: "How many such companies is the sector really able to accommodate?"
A version of this article appeared in the print edition of The Straits Times on May 25, 2018, with the headline 'Ride-hailing firm Go-Jek to launch in Singapore'. Print Edition | Subscribe
