Kuala Lumpur, Malaysia – Lalamove in Malaysia has announced that it is launching its ride-hailing service in the Klang Valley area, according to a recent blog by the company.

Not much about the service has been revealed, apart from encouraging users in the Klang Valley area to test out the service, and also stressing how users can switch from hailing a ride to also scheduling a delivery within the app.

Lalamove Malaysia has already hinted at expanding its ride-hailing service across other Malaysian cities, though there is no exact timeframe shared.

Lalamove is a delivery and logistics company which operates primarily in Asia and parts of Latin America. Lalatech, the parent company of Lalamove, recently filed for a listing on the Hong Kong Stock Exchange (HKEX), marking a major milestone in its growth journey. 

This move follows a fruitful 2022, in which the company reported its first profitable year with a revenue of $7.3b.

Earlier, in January 2021, Lalamove reportedly approached a $1.5b funding round, propelling its valuation to an estimated $1b. This funding allowed Lalamove to expand its logistics offerings, broadening its service reach across various sectors.

Hong Kong – Uber has teamed up with independent creative agency Special and martial arts icon Louis Koo for its latest campaign, spotlighting the challenges of traditional street hailing and showcasing the ease of using Uber Taxi.

The campaign cleverly taps into the double meaning of ‘Kung Fu,’ which in Cantonese also signifies ‘effort.’ Uber and Special set out to depict a dramatic Kung Fu-style standoff as the ideal metaphor for the tiring ordeal of hailing a taxi on Hong Kong’s bustling streets.

In the campaign film, Louis effortlessly navigates through the chaos, heading straight to his e-hailed Uber Taxi and bypassing the struggle of street hailing. The campaign was teased on his social media, where he announced he was “saying goodbye to Kung Fu for good”—only to reveal that it was the wasted effort of finding a taxi he was leaving behind.

Special also collaborated with local partners, including Kung Fu specialist director Adam Liu and stunt coordinator Jack Wong, to ensure an authentic and true-to-genre portrayal of martial arts in the campaign.

Lauren Portelli, managing director at Special, said, “Bringing together a hybrid team of our Australian brains trust with incredible local partners helped us create an idea that truly felt Hong Kong. Filmed in the heart of Causeway Bay, we were able to capture how easily Uber Taxi lets you bypass the obstacles of street hailing, getting you where you need to go.”

Sarah Parris & Dan O’Connell, creative directors at Special, added, “Martial arts films are experiencing a bit of a renaissance in Hong Kong cinema at the moment, and we wanted to make something that felt true to the genre. Working with one of the best directors in the region, Adam Liu, and a bona fide legend of the Hong Kong film industry, Louis Koo, was great. They made the project as easy as e-hailing with Uber.”

The brand campaign encompasses TV, online platforms, social media, and out-of-home advertising, complemented by a promotional initiative offering HK $1,000,000 in discounts on promotional cards distributed throughout the streets of Hong Kong.

Toga Leung, head of marketing at Uber Hong Kong, explained, “At Uber Taxi, we are dedicated to providing an effortless experience for the people of Hong Kong. As a local who grew up captivated by iconic Kung Fu movies, I’m excited to see that passion come to life in this culturally relevant and entertaining campaign. Collaborating with a diverse creative team at Special, alongside our talented local partners, has been instrumental in shaping this campaign. With over a decade of experience in Hong Kong, we understand the unique challenges residents face while travelling—challenges that often require their own form of ‘Kung Fu.’”

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has released a Statement of Decision (SDP), noting that the acquisition of Trans-cab by ride-hailing giant Grab is likely to result in a substantial lessening of competition in the market for the supply of ride-hail platform services to drivers and passengers in Singapore.

According to the commission, it has found that the proposed acquisition is likely to entrench and strengthen Grab’s already dominant position in the ride-hail platform market to the detriment of drivers and passengers.

It has also noted that that Grab’s plans to acquire Trans-cab, which is one of the largest fleets (taxi or private-hire car) not owned by or in partnership with any ride-hail platform in Singapore, to increase the availability of drivers on its ride-hail platform comes at a time when rival ride-hail platforms are facing driver supply shortages.

“There are also various strategies which may be employed by Grab to induce Trans-cab drivers to increase their usage of Grab’s ride-hail platform. The Proposed Acquisition is thus expected to result in a greater degree of “stickiness” of Trans-cab drivers to Grab’s ride-hail platform and a potential reduction in usage of rival ride-hail platforms. Consequently, rival ride-hail platforms’ access to Trans-cab drivers post-merger is likely to be significantly restricted,” the commission said in a press statement.

CCCS also notes that if competition constraints on Grab from rival ride-hail platforms are weakened, drivers and passengers could face higher prices and fewer choices for ride-hail platform services. 

Grab has also recognised that through the proposed acquisition, it will likely be able to significantly save on the incentives that it would have to pay to drivers as compared to if it employed alternative means to increase driver supply.

Nonetheless, CCCS is welcoming both parties to address the competition concerns raised before the commission makes its final decision about the merger.

Grab first announced its interest to acquire Trans-cab via its GrabRentals arm in July 2023, with initial feedback from the public regarding the merger happening a month later. Initial concerns about the merger have already been manifested by the agency since last year, considering it will make Grab becoming the dominant ride-hailing company in Singapore, discouraging competition.

As airasia ride, AirAsia’s e-hailing service, approaches its first anniversary, it recently revealed news everyone’s been waiting for – its expansion outside its headquarters in Malaysia.

Finally, airasia ride is soon to be available in Indonesia, the Philippines, and Thailand, and the launch is nothing short of pivotal as it meant shaking the competition that continues to be led by pioneers Grab and Gojek in the said markets.

As our Top Story for May, we sat down with Chiew Shan Lim, the regional CEO of airasia ride, who shared with us their vision and plans as the company expands the e-hailing to the region. 

Lim shared they’re not belligerent with the competition, but are eyeing to disrupt the market by filling in the gaps that current players are missing. 

In the conversation, Lim spoke of a common occurrence in ride-hailing today that he believes only puts us back to square one when we used to deal with traditional taxis. 

Usually, during peak hours, prices surge due to the scarcity of drivers, and Lim said this is a disservice to consumers. 

Why does the customer have to be penalised and have to pay more when you don’t have enough drivers. So we do not believe in that

Chiew Shan Lim, Regional CEO, airasia ride

“A driver should be compensated for the extra hour in a jam or the extra distance they need to travel for extra patrol and their time. But you can not [also] simply multiply the price just [because] there aren’t enough drivers [for customers],” Lim added. 

airasia ride is also turning the ecosystem on its head by decentralising the focus on consumers, and equally strengthening the commitment of the platform to drivers as well.

It recently launched the LadiesONLY ride which gives female passengers the option to ride with lady drivers–and vice versa. Lim said that, for drivers, the aim is to reduce the entry barrier for ladies to become a driver on the platform, where female would-be drivers continue to have reservations due to safety reasons. 

Watch the full interview with Chiew Shan Lim who shared with us the e-hailing’s disruptive goals through trailblazing plans for drivers as well as their foresight into each of the markets. Hear him also share his insight as airasia ride finally ends the monopoly of Grab in the Philippines. 

Businesses that have been receptive to the various shifts in market demand and have effectively pivoted their corporate strategies are well-equipped to ride the economic upswing expected in 2022. 

The ride-sharing industry in particular has had to contend with the massive setbacks that were precipitated by the COVID-19 pandemic. During the onset of the pandemic, a survey by market research platform Milieu Insight showed that 45 per cent of people in Singapore were spending less on ride-hailing services than usual, while a significant 36 per cent were increasingly concerned about the COVID-19 situation. Travel restrictions, compounded by lockdowns, circuit breakers, and stringent safety management measures, have and continue to disrupt regular consumption habits.

The ‘modern’ rider

Ride-hailing itself continues to be a viable service as consumers turn to mobility apps to book rides and avoid the crowds in public transportation.

The ability to move from one point to another, be it through private rides or small-group carpooling, proves to be a boon for those who prefer not to worry about braving crowds. A McKinsey report on shared mobility showed that during COVID-19, ridesharing is a preferred option to trains and buses, in which social distancing is challenging.

We believe that this is due in large part to the consistent emphasis on health and safety standards within the ride-hailing industry, even prior to the pandemic. Consumers have immense trust and confidence that they are more safe and secure when using ride-hailing services. With the onslaught of the pandemic, the industry has taken even greater measures to ensure the health and safety of its riders by committing to regular wipe downs and mandated mask-wearing.

These steps have further solidified the public perception that private rides offered by ride-hailing apps are safer than public transit. A Singapore Management University survey found that Singaporean commuters were more likely to opt for private-hire cars and/or taxis over public transportation. With the looming threat of the more easily transmissible Omicron variant, we expect the use of this service to grow in 2022 as consumers continue to prioritise their health and safety.

There is also a shift in mindset that we increasingly see in people today. Private rides are not a matter of luxury anymore, but rather about comfort, practicality and reliability. Discerning consumers are able to weigh the pros and cons of each viable option. While public and private transportation each has their merits, ride-hailing services offer the midpoint of being hassle-free and fairly priced.

Revving forward

With Singapore treating COVID-19 as endemic and the country’s gradual transition to a hybrid work arrangement, consumers could strongly benefit from the advantages of ride-hailing. As the daily commute becomes an antiquated concept for many of us, ride-hailing is now an attractive, stress-free alternative for the cost-conscious, given the irregularity of in-office work.

At present, ride-hailing providers have gone on to offer subscription plans that are a cost-efficient, practical option to those who need more of these services. Subscription plans not only come with discounts or cashback but also with bonuses and special offers that give consumers more bang for their buck.

As two of the major market demands from the industry currently are the incorporation of food delivery services and a safe, worry-free ride-hailing experience, subscription plans have likewise come to reflect these consumer appetites. In Singapore, several ride-hailing companies have started offering bundled subscription services that combine both food delivery and ride-hailing services in a singular monthly plan. This is made even more practical as riders can adjust these monthly plans in accordance with their consumption patterns. Through these subscription plans, ride-hailing companies are able to provide a convenient and reasonably priced alternative for working commuters who are currently adjusting to the novel idea of hybrid working.

As the practice of hybrid work and the demand for food delivery remains stronger than ever, subscription plans will serve as a strong foundation for the ride-hailing industry to grow in 2022. With more of these plans emerging in the future, it is up to service providers to offer increasingly more attractive, competitive plans that consumers could adhere to for a long period of time.

Riding into the future

It has been roughly two years since everyone had to do an almost complete overhaul of their routines. However, this also means everyone had two years to adjust and embrace this new environment.

The changes in consumer behaviour offered ride-hailing providers several windows of opportunity they can leverage on, and the continuous rise in the number of users and increased appreciation of the convenience and practicality of the services these companies offer are to be expected. We’ve seen that the ride-hailing industry, in particular, is not only in lockstep with the shifting market demands, but is also proactive and strategic in its handling of the distinct challenges brought about by the pandemic.

Ride-hailing companies changed gears as they saw fit, and the road seems well-paved for them to continue to do so in the future.

This article is co-written by Terence Zou, CEO and founder of Ryde, and Katrina Adrianne, PR & communications lead at Ryde.

The article is published as part of MARKETECH APAC’s thought leadership series What’s NEXT. This features marketing leaders sharing their marketing insights and predictions for the upcoming year. The series aims to equip marketers with actionable insights to future-ready their marketing strategies.

If you are a marketing leader and have insights that you’d like to share with regards to the upcoming trends and practices in marketing, please reach out to [email protected] for an opportunity to have your thought-leadership published on the platform.