Ryde is trying to capitalize on the sharing economy by matching private-car drivers with commuters on a similar route. Under the Ryde platform, passenger pay driver according to the distance they travel, helping offset the high costs of car ownership and gasoline. Ryde wants to expand that model to Hong Kong because it has similar regulations and traffic issues as Singapore.
Straits Times reported that Founder and chief executive Terence Zou said on Friday that he targets to launch the service - which matches private-car drivers to commuters on a similar route - in the second quarter of this year. During the press event, Mr Zou said that Ryde successfully matched "thousands" of people on its network in December and the number is expected to grow further this month.
In Singapore, the app now has amassed 20,000 members, and is on track to add another over 30,000 more by the middle of the year.
While the start-up does not take a cut from this fee, drivers and passengers pay an annual fee of $30 and $15 respectively for unlimited matches. There is also a $5 deal for five matches.
"Data analytics is a very critical tool we employ to give us the competitive edge in our operations. We analyse our data and identify patterns to help us make better business decisions. For example, we know that the average distance carpooled in 2015 was 14.6 km," said Mr Zou, as quoted on E27.
Ryde claims the latest upgrade to its app enhances information flow between members. The app allows riders to make both advance and on-demand requests while drivers can also post ride offers. The app's real-time capability enables members to see the most relevant requests at any point in time.
Zou, a Harvard Business School graduate who spent six years working at financial institutions including Citigroup Inc., counters that Ryde has an edge in being familiar with the needs of commuters in Asia's costliest urban centers.
"We're rushing to go to Hong Kong because we're pretty sure that Hong Kong doesn't have this service yet," said Zou as quoted on Bloomberg.
Zou conceived his business idea after failing to hail a taxi during the Christmas shopping season two years ago. A passenger using the app enters an address and the time he or she wishes to be picked up. The app allows riders to make both advance or real-time requests, and drivers can also do the same with their offers.
Competition is heating up across Asia as deep-pocketed companies such as Uber Technologies Inc. step up investments. GrabTaxi Holdings Pte, has raised about $700 million and is soon starting its own carpooling service in Singapore. Zou's Ryde Technologies Pte is in discussions to raise about S$10 million ($7 million) in new financing to help fend off rival GrabTaxi and prepare to take his app abroad. The start-up has raised some $2 million in funding to date.
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