What we are seeing is the start of a price war, providing convenience was the main factor ride hailing apps flourished in the country. They, were seen as beacons for the public that grew tired of poor public transportation and the rising cost of owning a car. But when these technological disruptors start competing among themselves for passenger counts and annual billing, purpose goes out the window and it starts boiling down to price competition.

In its effort to wrestle a dominant market share in the country,  GrabCar has lowered its fares from RM1.30 per km to RM1.10 an estimated 20% drop. The offer is restricted within Klang Valley all day for weekend and for weekdays applies for non-rush hours.

For example, a ride to or from Bangsar to KLCC is now RM11 with the reduced fixed fare compared to other ride hailing services which charge between RM12 and RM17. Whilst a ride to and from Bandar Utama and Pavillion is now RM17 during non rush hour and Zouk to and from TTDI is now only RM18.

This will not be the end of such price promotions, expect to see more such activities, with Uber and taxi’s taking on the fight.