A new player has announced that its intention to enter Singapore private-hire market and it will be adopting a brand new model that is not seen in Singapore.
Jugnoo is an Indian ride-hailing firm that has set its sight on Singapore. It will be introducing a bidding model system to their ride-hailing business here in Singapore.
How does the bidding model work?
Channel NewsAsia explained how the Jugnoo system works. When a rider request for a ride, drivers in the vicinity will be alerted to bid for the ride.
Drivers will be given 3 bidding options by the driver app.
1. Jugnoo’s suggested price; 2. a price 10 percent higher; and a price 10 percent lower.
Drivers can select from one of the 3 options or submit their own bid price.
The bids will be consolidated and sent to the rider to choose based on each driver’s rating, bid price and how long they will have to wait for the ride.
Who is Jugnoo
Jugnoo is an India-based tech company that is the 3rd biggest player in India, after homegrown company Ola and Uber.
Jugnoo CEO Samar Singla highlighted the openness towards technology and user willingness to accept new technology as key reasons to enter the Singapore market. He believes the bidding system will allow greater control for riders and drivers and create greater transparency.
He added that Jugnoo is not looking to fight for the market share and is contented to be a niche player. For a start, it hopes to start with a fleet of 500 private-hire drivers and complete 2,000 rides a day.
During the introduction phase, Jugnoo will not charge drivers any commission. However, it will eventually take a 10 percent commission fee from each ride, similar to what they charge their drivers in India.
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Jugnoo is expected to be launched on 1 May 2018.