Characteristics That Serve as the Driving Force of Ride-Hailing

The taxi-hailing applications basically serve a single purpose: Easing up the booking procedure of taxi. In
previous times, users had to wave their hand or whistle to get a taxi and then had to argue to decide right fare.
But with the introduction of these applications, the scenario has changed. With an effective pricing policy of
these applications, users are now able to book a taxi easily at affordable rates.
Pricing Policy
Well, they have made a smart move by introducing the concept of taking charge per kilometer traveled. These
applications have pre-decided a fixed amount per kilometer traveled by the user. Therefore, when users book a
ride, they enter their pick up and drop location in the application using which the application counts the
estimated kilometers to be traveled and adding the service charges they take, they display the estimated fare to
users before the ride. Thus, the user can view the estimated price to be taken in advance and can decide to
book a ride or not.
Offering Affordability
As their pricing policy is transparent enough for users to determine the charges per kilometer, what they keep
in mind while deciding charges is to make their rides affordable. Therefore, by offering discounts to their
users frequently they make sure that they increase the number of potential users successfully.
Offering One-Stop Solution
The primary goal fulfilled with this application is: User is able to book a ride from any location. Therefore,
being a smart solution for ride-hailing, these applications are providing their users with a simple and
affordable solution for transportation.
GPS Tracking
To provide safety and security features to their users, these applications have rewarded their users with a live
tracking feature. Using which they can track their ongoing ride anytime. Also, they can share their ride details
along with the current location to their trusted contacts.
Flexibility for Payment
These applications entertain their users with multiple payment options. They offer their users to choose from
the options like payment by card, cash payment or they can pay through an integrated wallet system offered
with the application. This smoothens the payment procedure.
Ride Scheduling
To facilitate their customers, these applications also provide the feature of pre-booking a ride. Yes, using these
applications one can book their ride in advance easily and the taxi will reach to them on their scheduled time
and place. Along with the flexibility of choosing the type of car, they also provide them with convenience.
Different Modules for Customers and Drivers
To serve drivers and customers simultaneously, these applications have applied a modular approach and have
created different applications for customers and drivers. Therefore, the features and functionalities of these
applications differ from each other. However, certain features remain the same for both. For example, user
login. Both of these applications have a compulsory feature of user login to maintain the records of users.
Ability to Check Real-Time Data
These applications also contain a different module for admin, the admin panel. Using which the owners can
track and control each and every aspect of the application. With efficient features of tracking and reviewing
the driver details and ride details, the admin can keep track of the drivers’ efficiency and also can reward them
for their good performance via promo codes.
Creating Promo Codes
The admin is the controller of the application. Therefore, to avail discounts and offers for their customers, they
can create promo codes and coupon codes using the admin panel and share with them. Using these codes,
users are able to get discounts on their fare and drivers are provided with some extra benefits.
To run a successful taxi business of your own, it is advisable that you keep yourself updated with the latest
trend and also facilitate your customers and drivers both with benefits at times to convert them into your
regular users. As the drivers are the driving force of your application, they must be kept satisfied to ensure that
your driving force keeps on increasing. Owning a huge number of drivers at your side who are eager to serve
your customers helps in providing faster and efficient services to riders. Therefore, the application must be
efficient enough to support all these requirements. Developing an application is time consuming and
expensive task.

Challenges and Opportunities in Ride-Hailing Industry Amidst Covid-19

While the current situation of the ride-hailing industry isn’t the most promising, it’s not all doom and gloom.
A recent survey estimates that post COVID-19, the global sharing market size will see a Y-O-Y growth of
55.6% from 2020 to 2021. The major drivers of this growth will be increased need for mobility in the midst of
rising urbanization and decline in car ownership. Additionally, increasing internet and smartphone usage
coupled with tough CO2 reduction targets will continue to drive the growth of the ride-sharing market.
General guidelines issued by Uber & Lyft to combat COVID-19
1. Drivers will be wearing a mask: both Uber and Lyft have made wearing a face or some form of face-
covering mandatory for the drivers. While Lyft simply asks its drivers to self-certify within the app that
they’re wearing a mask, Uber uses a new app technology that requires drivers to take a selfie before they could
log into their accounts. If the technology detects that the driver isn’t wearing a mask, then the app will restrict
them from picking up riders.
2. Riders will be asked to wear a mask: both Lyft and Uber will require drivers and riders to complete a
checklist before booking a ride. This checklist will prompt riders and drivers to confirm things like if they’re
wearing a mask, and whether they’re currently experiencing any COVID-19 symptoms.
3. Riders will be required to wash their hands
4. Riders will sit in the backseat
5. Windows to stay partially/fully open
6. No more pooled or shared cabs: pooled or shared cabs in which riders going to the same destination travel
together have been suspended in view of the social distancing guidelines.

Why New Ride-Hailing Startups Will Emerge Stronger At The Back End of COVID19 Pandemic?
1. Economy Will Eventually Get Back on Track
Masks and social distancing may be the new norm for the time being but there’s no reason to believe it will
stay that way indefinitely. There have been pandemics in the past and they certainly brought everything to a
halt for a certain time but eventually life did get back to normal. In a way, starting a ride-hailing business in
the middle of a pandemic can introduce business-owners to a whole new set of challenges. Tackling these
challenges can spur innovation and serve a great lesson on how to get through the worst-case scenario, very
early in their entrepreneurial journey.
2. Ideal Testing Ground
As the pandemic has taken away the weight of expectations off startup’s shoulders, businesses may apply their
new-fangled ideas and strategies into action and see the response they generate. It’s hard to think of this
approach in the pre-COVID phase, when businesses like Uber, Lyft and Grab had an almost iron-grip on the
ride-hailing market. But things are very different now. By introducing a new technology that addresses
customer’s health and safety concerns or special offers that reward people for following safety guidelines
could go a long way in earning customer loyalty and trust.

Why is the Ride-Hailing Industry the Next Big Thing?

1. Convenience
The ride-hailing  app offers a more seamless and convenient mode of transportation than regular taxis. The
introduction of the ride-hailing app abolished the need for commuters to stand at bus stops, waiting for the
next available taxi. In the same vein, drivers do not have to scour the streets and bus stops in search of
passengers. All they have to do is sit tight and wait for a passenger to locate them using the app;
2. Professionalism/ professional services
Before the introduction of the ride-hailing app, the transportation sector faced one huge problem:
unprofessionalism. Drivers could attack commuters and vice-versa. However, ride-hailing companies offer a
more professional and efficient system of transportation. Individuals can now commute to and from their
desired locations without fear or dissatisfaction. For commuters who value experiences and professional
services, this industry is the most suitable. Passengers can easily track drivers’ locations and routes to gauge
the time of pickup. In the same vein, lack of professionalism amongst drivers can be curbed as passengers can
rate drivers after each ride. Hence, the system can easily identify and weed out unprofessional drivers with
low ratings
3. Safer for both drivers and commuters
Drivers can avoid commuters with records of violence towards drivers. Commuters who constantly show acts
of violence towards drivers may eventually have their accounts deleted or deactivated. In the same vein, the
ride-hailing industry offers more flexible schedules to drivers. They can easily choose their working hours and
log out whenever they like or in cases of emergencies.
4. Cashless
In today’s world, cashless modes of transactions are seamless and reliable. Hence, ride-hailing apps have
utilized this system of payments. After each trip, the commuter’s account will deduct the amount equal to the
payment amount. Thus, drivers do not have to worry about fraudsters or commuters who may refuse to pay. In
the same vein, commuters do not have to worry about misplaced or forgotten cash. They can leave their homes
and reach their destinations even without cash;
5. A source of extra income
Ride-hailing has become a major source of income for drivers and private car owners. Individuals who already
have a job but need an extra source of income can venture into the lift hailing industry. Here, the hours are
flexible so he/she can fix working hours and still work a full-time job without any form of clashing. So far, a
large number of private car owners have either ventured or considered venturing into lift hailing;
6. On-demand commuting
Unlike regular transportation, the ride-hailing industry offers on-demand transportation. Thus, commuters can
easily request for a ride even in the middle of the night or early hours of the morning. This makes this mode of
transportation more convenient and seamless.

The Ride-Hailing Industry in 2020: Opportunities

1. Delivery services
Ride-hailing companies can diversify and delve into offering delivery services. So far, a few companies have
taken this bold step and are currently taking giant strides in the delivery industry. However, if more ride-
hailing companies delve into this industry, they can generate more revenue and increase their ROIs. Similarly,
the ride-hailing industry will grow exponentially and equally be diverse

2. Financial services
Although this may be risky, ride-hailing companies can decide to offer financial services to commuters as
well. To do this, they would need to partner or collaborate with credit companies to offer loans and auto-
financial services at a fixed interest rate

3. Autonomous ride-hailing
Autonomous ride-hailing will completely eliminate the idea of a driver and offer cost-effective commuting
services to individuals. This concept is even more seamless and cost-effective. Here, commuters can easily be
transported to their various destinations without a driver. So far, several ride-hailing companies have already
considered utilizing this opportunity. John Zimmer, the CEO of Lyft has predicted that within the next five
years, autonomous cars would make up a large percentage of the company’s rides. The introduction of
autonomous ride-hailing will not only cause a dramatic change but give the industry a complete facelift as
well. Thus, all ride-hailing companies should take the necessary steps towards utilizing this profitable
opportunity

4. Ride-hailing app development

Companies can look into developing and updating ride-hailing apps. This would make the booking process
easier and stress-free. They can equally create a taxi booking management system or a taxi fleet management
software in order to build a well-structured booking system.
For company and industry growth to occur, certain changes need to take place. Growth can not take place in
the presence of stagnancy. Hence, ride-hailing companies need to diversify and take advantage of the
available opportunities in 2020.

The Ride-Hailing Industry in 2020: Challenges

These challenges could serve as stumbling blocks to the potential growth of the industry. Hence, in order to
fully reach potential growth by next year, these challenges need to be addressed and gotten rid of.
1. Price wars
With the current surge of new ride-hailing companies, there is a perpetual war to fix competitive rates.
Commuters are more likely to switch to cheaper companies or apps. Thus, existing ride-hailing companies
may be under constant pressure to lower price rates in order to stay on top of the competition

2. Government restrictions and bans

Today, many ride-hailing companies are spreading their tentacles to several countries. Initially, these
companies were situated in only a few countries such as the USA and the UK. However, diversity has set in
and ride-hailing companies can now be found in different parts of the world. Although this is advantageous,
this venture poses a lot of risks and challenges. In some countries, government policies and restrictions could
make it difficult for ride-hailing companies to thrive. These countries may impose heavy taxes on the
companies, thus making it difficult to achieve ROI.

3. Building lasting customer loyalty

Over the past few years, new ride-hailing companies have emerged and more are yet to emerge. Thus,
commuters have a wide range of apps to choose from. Most individuals are more likely to stick to cheaper or
more comfortable companies. However, judging by statistics, low prices and comfort are simply not enough to
retain customer loyalty. A large percentage of commuters have more than one ride-hailing app on their
smartphones. Thus, they switch between these apps without sticking to one. With the current number of ride-
hailing apps at the disposal of commuters and individuals, building lasting loyalty has become increasingly
difficult. Hence, the growth of these companies could be slowed down or hindered by the lack of customer
loyalty

4. Economic disadvantages and limitations

Inasmuch as several ride-hailing companies are making efforts to reduce their prices, ride-hailing still remains
more expensive than regular transportation. A large number of individuals, especially in rural areas, can not
afford to use this mode of transportation. Thus, only about one-third of commuters actually use ride-hailing
apps. This economic disadvantage poses a huge threat to the growth of the company. So far, the goal of these
ride-hailing companies is to completely dominate and overtake the transportation sector? But how can this be
achieved when a majority of the population does not even use the apps? Thus, in order to achieve growth in
2020, ride-hailing companies need to work in conjunction with the government so as to breach the economic
barrier.

GRAB
 The grab is an app-based service provider that offers the only ride-hailing, ride-sharing, and logistics
services through its app. It operates in 8 countries mainly in Asia. It covers 3 industries by serve 3
types of service under the one roof so, the user does not have to use a different app for a different task.
Grab makes it easy for the ride, eat and also make trust from delivering logistic from place to another
 under the city. (ie. daily use items or small things). As said many options come with many problems
and we saw users who are with different age groups is facing some problem while booking the service
from grab app.
 Day by day the users increasing and in south-east Asia grab is one of the remarkable companies

Why Uber is not successful in South-east Asia?

 There are clear differences between the way the two operate and charge their customers. Uber charges
a base fare and they charge a fare based on the distance that you travel and the time that you take to
travel whereas GrabCar charges a fixed rate basis which does make it a cheaper option based on traffic
 Another key distinction is that GrabCar doesn’t implement the practice of surge pricing, you don’t pay
double the price during peak hours. And in my opinion, this is definitely a neat feature, as I don’t have
to shell out double the amount of cash every time I need to travel to and from work, which occurs
mostly during the peak hours between 7 am to 9 am and 5 pm to 8 pm.
 Uber has been operating in Malaysia for a longer period of time than GrabCar. In order, to compete on
the same plain as Uber, GrabCar has dropped its prices significantly to make it one of the most
affordable modes of transportation
Some of the competitors of Grab: OlA- India, JomRides- Singapore, Uber- around the world, Pink cab-
Malaysia, GoViet (GoJek), Be and FastGo- Vietnam

The factors driving the success of Grab

Grab was Vietnam’s most downloaded ride-sharing app, followed by GoViet (GoJek), Be and FastGo.
According to ABI Research, Grab had over 70 per cent of Vietnam’s ride-hailing market in the first half of the
year, compared with Go-Jek at 10 per cent.
1. Grab mastered the super app 
 The very first factor is the so-called ‘super apps’ – the one-stop app that satisfies a range of daily
services.  For Grab, this includes services such as transportation, paying bills, ordering food, and even
booking hotels. This factor is a key component behind the success of both Go-Jek and Grab and it
is what Uber left behind in South East Asia one year ago.
 Grab, like all such super-apps, provides enough benefits and functionality to keep its users from ever
needing to close the app.  It can cover everything at every step at any time. Today, users in Vietnam
can pay bills, book hotels, order food and send parcels all from the Grab app.
2. Grab has rewards and subscriptions 
 Reward programs are also helping to build customer loyalty. Grab now offers points for spending on
its app. Users can redeem points for cash vouchers at KFC, coffee shops, or for free Grab bikes.
3. R&D as a differentiator 
 Grab has shown its serious and long-term commitment to Vietnam. Grab now has more than 1,000
staff members in Vietnam which include more than 100 engineers in its R&D centre. This is a smart
move. Vietnam is one of the emerging hot spots for tech talent in the region. Plus, hiring the local tech
staff brings the company an unprecedented opportunity to deliver a platform catering to the region’s
mobile-first environment needs. With this, they can gain a combination of deep local understanding
and best-in-class engineering.
4. Hyper localisation
 Just look at the way Grab managed to master each Southeast Asian market’s transportation needs:
GrabBike in Vietnam, GrabBajay (three-wheeled motorized vehicles) in Indonesia, ThoneBane in
Myanmar, Tuktuks in Thailand, and Remorque in Cambodia.
 Grab is truly among the giant tech companies and they clearly understand the power of technology.
These benefits gave Grab valuable data insight into its customers and drivers on its network which
 leads to the promotion of traditional transportation modes in several markets. For business, real-time
unified data can be used to unlock automation functions and enable them to fully understand the
market needs of customers.
 These above characteristics are, for me, the most important characteristics for a startup to go global
and become a unicorn.
Market opportunity analysis – GRAB
Political Environment
Grab is the biggest taxi company in Asia. For the government, Grab is in a monopolistic company in Asia.
Most customers have some options for Grab. In Singapore, the government launch an investigation into Grab
monopolistic practice and implement new regulations: drivers need to apply for a license, passengers must
also take real name certification. They make some rules for Grab to adapt. If the customer cancels the
reservation within 5 minutes after receiving the driver, or does not appear within 5 minutes after the driver
arrives, he will be fined 4 Singapore dollars.
Economic environment
It is out after the Grab company entered a country; the country experienced high economic growth. It does not
stop there, the unemployment also fell since Grab always opens job vacancies, especially for drivers.
Social
In this modern era, everyone wants to be fast and easier. Everything must be accessible by cell phone and
therefore grab comes to answer the problems that occur in the community. Grab also always adapts to changes
and developments that occur. For instance, Grab Taxi, has provided not only shuttle services but also Grab
Food.
Technology environment
Grab is a company based in Singapore. It is an online platform that provides delivery and pickup services for
its customers. With an internet connection and assisted with Google Maps services, Grab can find out where
passengers’ pickup positions. Grab also has a Ride hailing system, the availability of accurate map data. With
that accurate map, service providers can provide travel time information to a more transparent cost calculation.
Discussion
 Grab provide quality customer service which is “speed, safety and certainty” to all the customers. This
can make sure the customers enjoy the brief journey and their services. The details of the drivers such
as name, phone number, photo, and fees are provided to the passenger to ensure transparency. Grab
provide the passenger to share the location with others. This can protect the safety of the passengers.
The passengers can rate the service of the driver after the trip. This can 100 help the Grab gets the
feedback from the customer and improve the experience for both driver and customer. The quality of
customer service can build up the loyalty of customers.
 Grab offers promo code to the passengers to interact with the customers. The customer prefers a lower
price. Grab offers the promo code with the partner to give the opportunity to scale their business. This
is a win-win situation for the Grab and the partner. Grab also has partnered with consumer brands in
Southeast Asia such as Baskin Robbins, Coffee Bean, Tea Leaf, and others to market the services.
Grab provide another way for the drivers and the partner to earn more income. The driver can reduce
idle time and maximize earning opportunities by delivering the groceries between passenger trips.
 Grab is the front-runner. It operates in more markets than Gojek and holds e-payment licenses in the
region’s six largest markets. Gojek only provides such services in Indonesia and the Philippines.
 To compete with a wide enough market, Grab companies require creativity and innovation in creating
products and ability to maintain consistency in supporting product quality. One of the problems that
Grab and Gojek are facing is pick-up points. This can be an opportunity for Grab. The download can
upgrade map quality on Google Map so pickup is more accurate than Gojek application. In line with
being consistent with the quality of the product, they must also be consistent with the price given. Price
 is one factor that is highly favored by consumers. However, consumers could experience a drastic price
increase. To resolve this problem, Fetch can set the tariff provided.
 Besides maintaining product consistency, Grab should improve service quality. One of the services
that customers want is fast-responding customer service. Good service does not only come from Grab
companies but also the drivers. The problem that is regularly faced by consumers is the driver. Poor
attitude and lack of knowledge of finding the trip route is the problem. Grab should improve the
system and the applicable SOP, so it can be very useful for drivers and passengers. If the company
cannot offer a lower price, then the company can provide good service to its customers, which is a
competitive advantage.
 Another competitive advantage is product differentiation. With the uniqueness that exists in the
product, it will be very easy for consumers to move from other products to the products we have. One
of the efforts that Grab has taken is to create a Grab Gerak (which exists in Indonesia) intended for
people with disabilities. A very good innovation from Grab and not owned by the Gojek company.
existing customers.
 Grab has made improvements to its ride app, which now includes features like hotel, meal ordering,
and reservation. It gives a convenient and perfect customer experience. Grab is also offering an
uncommon point feature that allows us to exchange coupons for different prices, including food,
hotels, taxis, clothes, cosmetics, and even a contract with game company Garena. Grab aims to
optimize customer satisfaction, maximize it and comfort by improving its functions for distinct groups.
 Grab companies are active in ASEAN only, and it will be if Grab can also operate in the ASIA region.
Grab must cooperate and establish relationships with several countries in ASIA so that Grab’s products
can be accepted in the community. It should be underlined, that not all countries in ASIA must be
lectured because there are several factors such as economic conditions, government regulations,
technology, and social conditions in the country
One of Grab’s rivals in Southeast Asia is Gojek
 Consistency Grab is expected to settle consistently with the quality of their products. Not only
consistent in their products but also with the prices given. This is the same problem faced by Gojek,
but if Grab can be more consistent by presenting consistent prices to passengers, this will be an
advantage.
 Grab should also pay attention to the consistency of the number of drivers and passengers, train or find
more drivers to ensure the probability of successful travel. Grab should also make a corresponding cost
assessment and budget including the driver training costs and other travel costs.
Risk
 Driver’s protests: Drivers can go on strike, reducing the company’s income. This happens because the
driver feels the money earned is not worth the expenses and economic changes that befall.
 More and more competitors continue to appear threatening the position of Grab in the shared public
transportation.
 Price is the most important factor in attracting passengers to use Grab, so giving passengers more
discount coupons will increase the fastest way for passengers to use Grab, but it is also threatening
grab's revenue. The more coupons, the less revenue the company will earn. This is a tough problem for
companies and passengers to overcome.
 To gain competitive advantage, Grab should always maintain its quality and uphold its brand image to
capture positive customers’ perceptions. It is also imperative for Grab to improve its service quality to
meet customer satisfaction which will lead to a positive perception, and attracting more potential
customers.
 The risk that Grab will take is by the rating system. The customer satisfaction impacts the driver’s rate
that leads to the driver’s performance.
Recommendations
 Grab should improve the Telematics apps, which is the combination of machine learning and
predictive analytics. This app can identify unsafe driving habits or any problems that come from
vehicles. For example, it can detect the speed of the vehicles, swerving, and hard brake or speeding up.
Car damage such as car engine problems causing car accidents could be also recorded. As a result, this
app can educate drivers to improve their driving experience.
 Grab should also fix the price to make sure the customers will not choose other competitors such as
Gojek.
 Grab should provide the best quality of customer service. Grab should make sure the customers feel
safe and trust the drivers by shows the driver’s details such as name, phone number, and plate number.
If anything happens to the customers, they can report to the police immediately by using their details.
 Grab should provide more flexible payment methods such as cash, credit card payment, GrabPay
(OVO), eWallet and online banking. As a result, customers can pay the fare easily and quickly.
 Last, the drivers should be trained to improve their communication skills so that the customers will feel
comfortable riding with them. It also can enhance better services for customers.