SINGAPORE, March 20 — The ride-hailing market here is about to heat up again, with Vietnamese firm FastGo to launch in Singapore next month as part of its expansion plan in South-east Asia.
Singapore is the third country that FastGo will be available in after Vietnam and Myanmar and the firm is revving into a market that includes ride-hailing giant Grab, Indonesia’s Gojek, Ryde and Tada.
The company, which is part of technology startup NextTech Group, said in a press release issued today that it also planned to launch in Indonesia, Thailand and the Philippines this year.
While FastGo did not provide details on fares for riders, its founder and chairman Nguyen Huu Tuat said that “any FastGo ride will always be cheaper than the others”. Customers will not have to pay surcharges during peak hours and they can leave tips for drivers when booking a ride, or opt for priority services.
Unlike some ride-hailing apps, FastGo will charge its drivers a fixed daily subscription fee instead of collecting commission fees. It expects to charge a fee of below US$5 (S$6.80) if a driver’s income exceeds US$30 a day.
This strategy would allow it to “attract driver-partners and customers at a low cost”, said the firm.
Drivers here can register on the FastGo app from April 1 and customers will be able to book rides from April 30.
Transport economist Walter Theseira said that the addition of “another small entrant” would not make a difference here, unless the new player was financially backed by a strong sponsor or a well-known Singaporean firm.
“Other than GoJek and Grab, the other (existing) players have very small market share and have difficulty making much impact locally,” said Dr Theseira, an associate professor at the Singapore University of Social Science.
“The market is easy to enter but it’s very hard to get substantial market share.”
FastGo started its private car and taxi service in Vietnam in June last year and claimed to be one of the top two ride-hailing services in the country with close to 60,000 drivers.
After receiving an undisclosed sum in a Series A investment from venture capital platform VinaCapital Ventures in August last year, FastGo is aiming to raise another US$50 million in its Series B investment round over the next few months. — TODAYonline
