iPrice Group conducted a study comparing the cheapest prices between conventional taxis and two major ride hailing services, Grab and Uber, in 6 ASEAN countries.
Key findings from the study revealed the following:
Ride Hailing services are cheaper than conventional taxis in all the countries mentioned.
In Malaysia, Uber remains the cheapest for long distances (20KM) while Grab is cheaper for shorter distances (5KM).
Uber is cheapest in Indonesia, Thailand and Vietnam for both 5KM and 20KM distances.
Grab is cheapest in Philippines and Singapore for both 5KM and 20KM distances.
Now that Uber has sold off its China unit to DiDi in August 2016, there is a clear indication that they are focusing their expansion efforts in Southeast Asia. This is also apparent as Uber has been doubling down on resources, staffing and technology.
While this sounds great for consumers, the ride-hailing industry is getting intensively competitive in Southeast Asia. On the other hand, Grab has created a strong foothold in Southeast Asia for the past four years with funding support of $750 million by Softbank in September 2016 and has great plans to advance further in the region too.
With the ride hailing sector is expected to become a $13 billion industry by 2025, things can only get better for consumers as Grab, Uber as well as other players in the region as the fight to gain majority market share become fiercer.