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The stakes are high for ride-hailing market in Southeast Asia. Two big competitors, predominantly Grab and Uber, are competing to gain majority market share as the sector is expected to become a $13 billion industry by 2025.
Since its inception 4 years ago, Grab has created a strong foothold in Southeast Asia with funding support of $750 million by Softbank in September 2016 and has great plans to advance further in the region. On the other hand, Uber’s recent move of selling off its China unit to DiDi in August 2016 is a clear indication that they are focusing their expansion efforts in Southeast Asia as well. This is 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.
As the Malaysian cabinet has given its approval to legalize ride sharing services in the country, the transportation sector in the country is slated to see further developments. Ride sharing apps in most countries in SEA remains illegal and Malaysia is among the few who has decided to embrace the new transportation service.
This study was conducted to compare and identify the cheapest mode of transportation between the two ride-hailing giants with local taxies in each major Southeast Asian country. Our research in Southeast Asia takes in account on price differences by Grab, Uber and Taxies based on various price components and price points.