Online transportation services are battling for market dominance in Southeast Asia, competing both with each other and with conventional taxis. According to an iPrice study, the market share of these transportation services will reach US$13 billion by 2025. They are vying to offer the cheapest prices to consumers.
Grab's fare for a 5-kilometer (km) trip in Malaysia is only US$1.8, the lowest compared to other Southeast Asian countries. The low base fare makes Grab's fares in Malaysia the cheapest. Meanwhile, Grab fares in Indonesia and the Philippines are the same, at US$1.9 for a 5 km trip. The highest Grab fare is recorded in Singapore, reaching US$4.3. The high base fare and distance make Grab's online service the most expensive in Singapore.
In major Indonesian cities such as Jakarta, Surabaya, Bandung, Makassar, and Bali, roads are congested during rush hour. On average, people spend 1-3 hours commuting. Under these conditions, people need transportation that is the cheapest, fastest, and easiest to access. There are two transportation options: conventional taxis or online transportation services like Uber and Grab, or Go-Car.