Ride hailing service in this region is heating up with the two large providers, Uber and Grab increase competition for ridership. Malaysia owners behind Grab were making headway expanding their presence with large funding’s until San Francisco based Uber ramped up its presence with intensified efforts to regain lost time.
Having secured approval from the government for ride hailing service in the country, both providers are spreading their offering across more cities with Uber now extending their service for taxi driver’s to join the platform. There’s close to 28 million vehicles on Malaysian roads making us one of the highest in Southeast Asia, it comes as no surprise the authorities are keen to bring the numbers down and hopes technology can solve this problem. Malaysia’s one of few countries with regulators embracing the new app based service.
Uber is already working with the Ministry in mitigating traffic woes in the city and is in the midst of drafting long term solution with city planners to integrate public transport system more effectively. During the recent budget, Prime Minister Najib Razak allocated RM5000 for taxi drivers to purchase new vehicles who intend to covert to ehailing service. Uber is in talks with Proton to support these taxi drivers. On the customer front, Uber competes in price per trip and at times is cheaper than Grab. User interface leans towards the former, with many users prefer the simple navigation on booking a ride and accustomed to pay after ride instead of paying first. Drivers on both applications have less to complain as more income opportunities lie ahead for them apart from passengers, assets (vehicles) are now being turned into moving advertising billboards.
Momentum is with the Silicon Valley start up but Grab is not relenting pushing the service to neighbouring countries, the provider has just signed up with Disney on a marketing campaign for the upcoming blockbuster Star Wars: The Last Jedi. The force is strong on both sides, should the time come to choose a side, which one would it be for you?
