AirAsia Soon Launches Ride-Hailing Service in Indonesia November 2022

The AirAsia Group is actively introducing new services in an effort to grow its non-airline revenue. One of them is service ride hailing which has officially launched in Malaysia and several Southeast Asian regions.

Yesterday (13/9) Capital A, the name of AirAsia's parent company, announced the achievement of one year of airasia ride services by offering full-time jobs to all drivers. This full-time job option is a form of appreciation and strengthening the commitment of the Mandiri Driver program which is currently available on airasia ride.

In one year of operation, the airasia ride service managed to complete 2 million rides, just four months after reaching 1 million rides in April this year. Drivers who have registered in the application have reached 53 thousand people.

Capital A CEO Tony Fernandes said, “This is something natural to do. Prioritize the fleet. Last month, we embarked on a new initiative offering delivery riders full-time employment, and today we are commemorating the first year of airasia ride by announcing another new step -- offering all eligible airasia ride drivers full-time employment."

In the press conference which was also broadcast live, online This time, Lim Chiew Shan as Regional CEO of airasia ride, also revealed the plan to expand this service to Indonesia. "We will soon launch the service (airasia ride) in the next two months in Indonesia, no later than November 2022," he said.

Asked about the business model that will be implemented, Shan said that the company will continue to run the existing business model, of course adjusting to the regulations in each country. Related benefits received by the driver, Toni emphasized that the company will implement the same strategy as long as it is permitted by the government in each country.

This move is in line with AirAsia's plan to launch a new initiative called the “AirAsia Super App”. This application allows users to make hotel and activity bookings in addition to flight offers, in other words providing all services in one application.

Previously, AirAsia had already inaugurated the service airasia money, marketplace financial products that offer affordable financial solutions, from insurance, investment, remittances, and social fundraising, with airasia food partners.

Food delivery service airasia food itself was launched in the same month and started operating in several areas such as, Tangerang, West Java, followed by Jakarta in June. Since then, thousands of traders have signed up to the platform.

Services ride hailing in Indonesia

Based on data from Measurable AI, Gojek and Grab still a two player mobility ride hailing largest in Southeast Asia. In Indonesia alone, market share ride-haling as a whole has stabilized with Grab lead with a slight advantage.

Measurable AI tracks total spending on Mobility (including Bikes, Cars) for both companies using the “total price” metric as a proxy for company revenue. The term "total price" here is the number before the promotion or discount was applied to the order, which is closest to the GMV metric for both companies.

Marketshare Ride-hailing 2021 -2022: Application Gojek versus Application Grab (Updated in August 2022) / Measurable AI

However, recently, there are new services such as Maxim and inDrive that try to disrupt the dominance of these two services. Maxim has been operating in Indonesia since 2018, providing online taxi services, ojek courses food delivery, and delivery of goods.

Currently, the Russian company is available in 63 cities. Not only online transportation services, this transportation company also has a variety of services that can be used to meet daily needs including massage and spa services as well as cleaning services.

While inDrive has a relatively different business model. This service does not determine the fare in the application, but allows passengers to set the fare in advance. Through the inDriver application, a fair fare is determined by the driver and passenger by negotiating and agreeing on a suitable fare for both parties.

Ride-hailing was one of the sectors hardest hit at the start of the Covid-19 outbreak. Nonetheless, the sector is slowly improving as vaccination rates increase and economies are gradually reopening around the world. We will continue to monitor the giant competition ride hailing in different markets.