Tada! New ride-hailing app aims to stand out
It offers 'no-commission' model to drivers, plans to monetise user's travel data
A new company has joined the ride-hailing fray here in the wake of Uber's exit earlier this year.
Not only does it promise to give Singaporeans an alternative to ride-hailing giant Grab, but it also has a no-commission model that should be music to the ears of its drivers.
Launching its application, Tada, in a media event at its Ubi office yesterday, Mass Vehicle Ledger (MVL) Foundation founder Kay Woo said drivers will be charged a "negligible" transaction fee of 3.4 per cent of each fare paid by electronic means.
The money will go towards maintenance of its payment platform.
"We don't collect any money for cash payments," said Mr Woo, who is from South Korea, where MVL was established as a blockchain start-up that deals in cryptocurrency.
In contrast, Grab charges its drivers a commission of 20 per cent per fare.
Mr Woo said more than 2,000 drivers have signed up on its platform.
"We are aiming to have around 3,000 or 4,000 drivers by next month," he added.
"We want to provide 100 per cent support for our drivers. By removing the commission fee, we can also remove the problems and pains of unreasonable fares for riders. "
Tada will also eschew dynamic pricing - where prices rise or drop based on demand - and instead impose surcharges during peak periods, similar to taxis.
The platform operates under a non-profit model and is being funded by its initial coin offerings of around $22 million, which was raised earlier this year.
Asked how Tada can sustain its operations, Mr Woo said it can derive revenue through partnerships with car rental companies, the trading of MVL coins, and selling of data of its drivers and riders to third-party participants in the MVL ecosystem, which will be done only with the consent of its users.
"Traffic information collected during a trip may be useful and valuable for insurance companies or carmakers of autonomous driving research companies," said Mr Woo, who stressed that the data is "completely owned" by its users.
CRYPTOCURRENCY
Tada also offers a cryptocurrency-based rewards programme, the first of its kind in Singapore.
Riders earn MVL points from leaving reviews after each trip, while drivers earn MVL points from driving.
MVL points can then be converted into MVL coins, a form of cryptocurrency that can be exchanged for services or goods, MVL coins can also be cashed out.
Transport economist Walter Theseira acknowledges Tada's unique business model but warned that it would need to attract a large number of drivers and riders to succeed.
NUS Business School's Associate Professor Lawrence Loh expressed surprise at the number of start-ups entering the ride-hailing space.
They include Ryde, Kardi, Filo Technologies and India's Jugnoo, and the impending entry of Indonesian giant Go-Jek.
"One hopes the distinctiveness of blockchain technology will help draw users to Tada," said Prof Loh.
Driver Lee Seng Leong, 54, said: "Grab used to offer many incentives, so my life wasn't so tiring. But these days, I have to drive around 14 hours. Hopefully, with more platforms available, I'll be able to earn more."
An undergraduate who wanted to be known only as Mr Soh, 24, said: "I am okay with sharing my data as long as I am not identifiable."
Why Tada?
The name Tada was picked because it holds multiple meanings, says MVL founder Kay Woo. "In English, you would say 'tada' during a magic show. In Korean, it translates to 'let's ride'. In Japanese, it means 'free' - Tada is free of margins and free of commissions," he said.
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