A new player is joining the ride-hailing scene in Singapore. FastGo, a Vietnamese tech company, is launching in Singapore next month as part of their expansion plan in South-east Asia.
Private-Hire Drivers here can start registering with FastGo mobile from 1st April 2019. The app is expected to go live for booking by end of April 2019.
Background of FastGo
According to TODAYonline, FastGo is part of technology startup company NextTech Group. They are currently operating in Vietnam and Myanmar, with plans to venture into Indonesian, the Philippines and Thailand this year.
FastGo was launched in June 2018 in Vietnam after the withdrawal of Uber from the market.
There are 3 main services of FastGo ride-hailing service namely FastCar, FastTaxi and FastBike. It is likely that only FastCar and FastTaxi will be offered in Singapore.
What is Special about FastGo
FastGo adopts a fixed daily commission model for drivers. They are expected to charge an estimated US$5 ($6.80) if the fare exceeds US$30 ($40.80) a day. Drivers may not have to pay a fixed commission if the total fare is below US$30 a day.
FastGo claims that it will always be cheaper than others as it does not have surcharges during peak hours.
The firm plans to adopt the low fare and low commission model to compete in the market.
What do Firstlane think
Starting a ride-hailing service in Singapore is easy peasy. Just register a company, get someone to develop the app, start marketing and you are the next Travis Kalanick or Anthony Tan.
Making it a success is the biggest challenges here. Since the departure of Uber from the Singapore market, there have been many aspiring companies that have tried to get a share of the pie. Look where they are now?
Challenges that FastGo will face
- No surcharge or better known as no surge – Riders would all try to book FastGo during surge periods but there will not be sufficient or any drivers.
- Registration and Launch within 1 month – End up with 2 big issues. Too many drivers and too little riders or vice versa. Drivers and consumers do not have much patience for you to slowly grow.
- Financial muscles of the big boys – They do not have the deep pockets of Grab and Go-Jek. Can they offer to dangle incentives and promo codes to drivers and riders?
- Where will they stand – FastGo wants to be cheaper than JustGrab and Go-Car booking services but can they be cheaper than Grabshare or even GrabHitch? Earlier this week, there was even a carpooling Telegram chatgroup formed that went viral to link up drivers and riders.
FastGo needs to rethink its strategy and plan properly before they set foot in Singapore ride-hailing industry.
For Drivers who want to sign-up with FastGo Singapore, they can register online thru this link.
Image – FastGo.Mobi Facebook