Ryde to launch private-hire car service RydeX on 2nd May

Like the service provided by your private-hire car driver, and want him to ferry you again? Local carpooling app Ryde's new RydeX service, which will be launched on 2^nd May, allows users to privately request their preferred drivers, and also to give him a tip after the ride.

These details were revealed on Thursday (26^th April) by Ryde, a month after the start-up said it would launch a private-hire service following Uber's exit from South East Asia. Ryde's RydeX pits itself against Grab, the remaining player in the market.

Mr. Terence Zou, Ryde's Chief Executive, said the firm has already recruited 5,000 licensed private-hire car drivers within the last month, with a 'significant proportion' being formerly under Uber. Mr. Zou expects to add another 10,000 more drivers in the next three months, and he said RydeX will only take a lower 10 percent commission.

Grab currently takes a 20 percent cut. Unlike Grab, however, RydeX will not be on-demand at the start and users will have to book their rides at least 10 minutes in advance to get a match. The minimum fare is $8, and rates are at 60 cents per kilometre. Like Grab and Uber, there will also be a surge factor based on demand, but Mr. Zou said this will be capped at $100.

Mr. Zou said to keep the business asset light, there are no plans currently to set up a car rental business, which is what Uber and Grab did, to ramp up its fleet size. Mr. Zou does not believe in bleeding investors' funding to gain market share - such as by offering fare discounts and driver incentives - but wants to grow Ryde to be sustainable and profitable.

He is banking on a five percent cashback for users, personalised driver requests, and advance booking of up to seven days, to win over users. Competition in Singapore's ride hailing market is heating up, following Uber's exit, with Indian auto rickshaw booking app Jugnoo and Indonesia's Go-Jek also having plans to enter the industry.