Indonesian superapp operator Gojek has teamed up with Singapore’s largest taxi operator, ComfortDelGoro, to explore ways to address challenges affecting the point-to-point (P2P) transport industry in the city-state, including driver shortage, according to a statement on Monday.
As part of the collaboration, Gojek users will be able to book ComfortDelGro taxis via the Gojek app. They will also explore sharing resources, including electric vehicle and ancillary revenue opportunities, as well as support solutions such as insurance, driver training, and vehicle maintenance.
ComfortDelGro Private Mobility Group CEO Jackson Chia said the partnership is expected to benefit the whole P2P transport industry. “By looking at how we can improve the fulfilment rates, we are essentially improving driver welfare. Better fulfilment rates translate to more earnings for drivers, and that in turn, will encourage vocational licence holders to consider rejoining the P2P industry,” he said in a statement.
Higher fulfilment rates will also improve service to commuters as having a bigger pool of drivers means lesser waiting time for them, Chia added.
Meanwhile, Gojek Singapore’s general manager, Lien Choong Luen, said working with ComfortDelGro to combine fleets will help them cope with the increasing demand for rides. “Drivers are a critical element within Singapore’s transport infrastructure, and I hope this announcement will encourage more driver-partners to consider joining or returning to our platform,” said Luen.
More details will be announced over the next few months, the company said.
Singapore’s P2P transport industry is facing a severe driver crunch that has resulted in a shortage of cabs and steeper fares. Since January 2020, the number of active taxi and private-hire car drivers has fallen by 18% to about 57,000 as of June 2022, the city-state’s transport minister, S Iswaran, had said in August. This is mainly due to lower demand for P2P transport during the COVID-19 pandemic that forced thousands of ride-hailing drivers to give up their gigs.
However, with the abatement of the pandemic, demand has been surging since the beginning of 2022 and daily P2P trips have increased by 30,000 between February and June. The number of drivers, however, hasn’t increased as rapidly as the demand, and therefore the shortage continues.
This is not the first time Gojek is collaborating with a taxi operator even though the two are essentially seen as competitors. In 2016, the superapp had teamed up with Indonesia’s largest taxi company, Blue Bird, following protests by the latter’s drivers against Gojek. Four years later, the ride-hailing firm reportedly acquired a minority stake in the taxi operator.
Gojek and Blue Bird customers can now book a ride on either app. The collaboration has helped the two companies increase their market share, and according to Statista, Gojek’s market share in Indonesia’s ride-hailing transportation industry has gone up to 52% as of July 2022.
Gojek set foot in Singapore in November 2018 and now offers four-wheeler ride-hailing services such as GoCar, GoCar XL, GoCar Premium, GoTaxi, and corporate service GoCorp. However, it hasn’t been able to grow as fast as as its regional rival Grab, which launched in the city-state five years earlier in 2013. Grab’s services in Singapore cover food delivery, courier services, online groceries, and fintech, in addition to transportation services.
Grab’s revenue share in Singapore’s ride-hailing market is estimated at 50.2% as of March 2022, according to Statista, making it a market leader. On the other hand, Gojek had a market share of about 18% in the same period. CDGTaxi (ComfortDelGro) owns around 15% of the market, followed by local ride-hailing apps Tada (10%) and Ryde (6%). The recent partnership might help Gojek and ComfortDelGro expand their market share in the city-state.