Phnom Penh is no stranger to the concept of ride-hailing. In 2016, its first homegrown ride-hailing service by Exnet hit the streets. Since then, the city received seven other players.<\/p>\n
Most are operating on the fringes of the market as popular players Singapore-based Grab Holdings Inc, and local company PassApp Technologies Co Ltd consume the larger part.<\/p>\n
Recently, South Korea-based ride-hailing service provider Mass Vehicle Ledge Foundation Pte Ltd (MVL), which operates TADA app, joined the market, bringing with it a new business model to rival its contemporaries.<\/p>\n
MVL\u2019s zero-commission model where drivers need not pay the app provider any commission, currently practiced by Grab. Drivers under Grab pay a commission of 25 percent to the company.<\/p>\n
Drivers tend to work under multiple ride-hailing services to earn more. TADA drivers could likely earn a full sum from rides without the obligation of commissions.<\/p>\n
Despite the presence of two ride-hailing giants in the market, MVL is not intimidated, believing they would be able to capture a market share on the back of their business model.<\/p>\n
\u201cWhen our parent company decided to expand, we wanted a regional presence but we weren\u2019t aware of the growing Cambodian market,\u201d says TADA Cambodia\u2019s operations head, Kalyana Phal.<\/p>\n
During a visit to Phnom Penh, MVL founder Kay Woo realised the high usage of smartphone and presence of ride-hailing service, she explains.<\/p>\n
Apparently, Woo was confident that TADA would be able to sustain due to low operational cost and support from the parent company.<\/p>\n
It is present in Singapore, South Korea and Vietnam. If things go as planned, TADA will expand to Siem Reap and Sihanoukville in the second half of this year.<\/p>\n
Over time, Grab and PassApp\u2019s main hold on the market formed a challenge for small local players to survive in the market. Exnet sought a new income by generating advertising revenue.<\/p>\n
\u201cWe look at competition positively. A competitive market means that there is a good share (for everyone). We want to focus on the niche market,\u201d Phal says.<\/p>\n
The zero-commission concept stems from a study conducted by MVL which showed the impact on drivers resulting from the payment of commissions.<\/p>\n
While it relieves drivers off their dues enabling them to earn a profit, MVL is expected to make its margin on a business-to-business model by using blockchain technology.<\/p>\n
\u201cWe are creating an ecosystem that allows participants to upload vehicle data for secondhand car dealers, self-driving car makers, and insurance companies.<\/p>\n
\u201cWe want to build a good relationship with partners in the mobility and banking sector to generate revenue,\u201d says Phal.<\/p>\n
In the meantime, MVL will work on convincing drivers that the business model benefits them. She adds that MVL is not interested in monopolising the market as customers deserve choices.<\/p>\n
\u201cWe want people to choose what they want and we want better livelihood for the drivers,\u201d Phal says.<\/p>\n","protected":false},"excerpt":{"rendered":"
Phnom Penh is no stranger to the concept of ride-hailing. In 2016, its first homegrown ride-hailing service by Exnet hit the streets. Since then, the city received seven other players.<\/p>\n","protected":false},"author":3,"featured_media":1975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"Cambodia\u2019s competitive ride-hailing market does not cease to entice new players CC\/Siv Channa","_FSMCFIC_featured_image_nocaption":null,"_FSMCFIC_featured_image_hide":null,"footnotes":""},"categories":[3],"tags":[25,434,435],"yoast_head":"\n