SINGAPORE: With BlueSG pausing its services, several major car-sharing firms told CNA they would not be filling the point-to-point void for now, although one did not rule out moving into that space in future.
Car-sharing operators GetGo and Tribecar said a point-to-point service would be operationally more challenging and that they are focusing on enhancing their current offerings, while Drive Lah said it is "possible" they may consider such a service in future.
BlueSG is suspending its operations from 11.59pm on Friday (Aug 8), in what it calls a “strategic pause” as it prepares for a relaunch next year.
The company is the only car-sharing platform that offers point-to-point services in Singapore. This allows users to pick up a car at one location and return it at another.
Experts said its move to suspend operations was likely influenced by losses caused by an ageing fleet.
GetGo’s chief executive and co-founder Toh Ting Feng said a point-to-point car-sharing model would present "significant operational challenges".
“It requires a substantial investment in infrastructure, such as dedicated parking and charging stations across the island, and a complex logistical network to ensure vehicles are properly distributed and maintained,” he told CNA.
"Our current model, which focuses on a 'point A to A' service, is a strategic choice that allows us to provide a reliable and consistent experience for our users without these complexities."
GetGo said that since its launch in 2021, it has seen "sustainable growth" – from over 400 vehicles and 10,000 users, to around 3,000 cars and half a million users in three years.
A photo of a GetGo car. (Photo: TODAY/Lim Li Ting)
Similarly, Tribecar’s co-founder Adrian Lee said it would be operationally more challenging and labour-intensive to offer point-to-point services, as cars could be parked in many different locations across Singapore.
"The primary challenge is that the current regulatory and infrastructural framework does not support the entry of new players into the point-to-point space," he said.
"Without a change in policy, it is not possible to launch such a service."
When asked if Tribecar may have plans to offer point-to-point services, he said the company's primary focus is to ensure users in heartlands have sufficient vehicles that are readily available.
Tribecar is only allowed to park registered cars that are specifically tagged to individual carparks that allow season parking.
The company has a fleet of 1,400 vehicles, an increase from an initial 350 vehicles five years ago. Mr Lee said Tribecar has seen a 35 per cent year-on-year increase in users over the past five years and described the car-sharing sector as a "competitive market".
A Tribecar vehicle. (Photo: TODAY/Raj Nadarajan)
Drive Lah's chief executive and co-founder Dirk-Jan Ter Horst said expanding into the point-to-point space was not on top of their list at the moment, but he did not rule out the possibility.
Drive Lah’s peer-to-peer model means car owners and commercial providers can rent out their vehicles on the platform, and users can lease these cars. Describing the company as an “Airbnb for cars”, Mr Ter Horst said the platform now has 275,000 users and about 2,000 cars.
Explaining why moving into the point-to-point space was not currently a top priority, Mr Ter Horst said its model means owners want their cars to be returned to their homes.
"We see the type of use cases where people take it a little bit longer, not just for half an hour but from point to point, but they return it.
“And actually, from a cost point of view, it still makes sense – because the cost for one day or renting for six hours may still be worth it instead of doing two point-to-point trips,” he added.
When asked if Drive Lah may in the future own a fleet to provide point-to-point services, he said this was "certainly possible".
A photo of a car on Drive Lah's platform. (Photo: Drive Lah website)
Transport analyst Dr Terence Fan said he does not think car-sharing operators will move into the point-to-point service space immediately.
The assistant professor at the Singapore Management University (SMU) noted barriers to entry, such as securing parking lots in sought-after locations and taking the time to grow to a "reasonable presence".
“The competition has grown significantly over the past few years. Now almost every medium-to-large housing estate has one or more dedicated car parks used by car-sharing operators,” Asst Prof Fan said.
“New entrants need to offer something more to be competitive.”
There were 97 complaints about car-sharing services in the first half of this year, said the Consumers Association of Singapore (CASE) on Tuesday.
These complaints included pre-existing defects, poor maintenance, billing issues, high insurance excess and service reliability.
The watchdog said it was working with operators to develop a CaseTrust accreditation scheme for the sector. This is aimed at raising standards and giving customers peace of mind, said CASE president Melvin Yong.
"Consumer education will also play an important role as more people use car-sharing services. CASE will work with the industry to educate consumers on how to safeguard their rights and prevent disputes when using car-sharing services," Mr Yong told CNA on Thursday.
Car-sharing services are private commercial arrangements and are not regulated by the Land Transport Authority.
All three car-sharing operators told CNA they supported the accreditation scheme.
Tribecar's Mr Lee said it would "formalise the role of car-sharing as an integral part of Singapore's sustainable transport ecosystem and provide a clear set of standards for the industry".
"We have advocated for tough, comprehensive standards that will not only challenge us but also our peers and future entrants," he added.
"This is because we firmly believe that elevating the entire industry is the only way forward to ensure sustained growth and public trust."
Similarly, Mr Toh believes accreditation and guidelines would provide consumers with greater transparency and confidence. GetGo is also working with CASE to develop the accreditation framework.
“GetGo fully supports any initiative that aims to raise industry standards and protect consumers,” he said.
“An accreditation scheme would formalise the high standards we already adhere to,” Mr Toh added.
"It would provide consumers with greater confidence and transparency. We view this as a positive development for the entire carsharing industry."
Mr Ter Horst welcomed the accreditation, but hoped there would not be too much administrative work involved for the private car owners on Drive Lah’s platform.
"What you don’t want to do is to scare people off ... you want to reduce the barrier as much as you can," he added.
Asst Prof Fan also supported the "proactive move" by CASE, saying it could provide incentives for operators to behave in a "transparent and responsible manner" if done properly.
"I hope the proposed accreditation won’t simply (be) biased towards incumbents, and can shield operators from unjustified comments (or) complaints," he added.
Both Tribecar and GetGo said their vehicles undergo regular maintenance at intervals recommended by the manufacturer, besides adhering to LTA’s inspection requirements.
GetGo’s Mr Toh said the company also conducts routine checks and has a system in place for users to provide real-time feedback.
Tribecar’s Mr Lee said its cars are taken out of service to be maintained typically at 10,000km to 15,000km intervals as recommended by the workshops. Almost all vehicles in the company’s fleet also undergo annual inspections, he added.
Besides reports by users on vehicle issues, Tribecar also proactively contacts “super users” in specific areas for their input on the vehicle’s condition, Mr Lee said.
Mr Ter Horst said Drive Lah does not face frequent reports of dirty vehicles or poorly maintained cars on its platform.
Although the company does not fully control how people maintain their cars, Drive Lah may block owners from offering their car on the platform if an issue has not been fixed, he added.
Mainly, owners who rent out their cars on Drive Lah keep them clean for their own use and personally maintain them, he explained.
"And also, if I'm renting your car, I feel that I need to be a little bit more careful when I use the car and that means issues like dirty cars – we hardly see it," he added.
Continue reading...
Car-sharing operators GetGo and Tribecar said a point-to-point service would be operationally more challenging and that they are focusing on enhancing their current offerings, while Drive Lah said it is "possible" they may consider such a service in future.
BlueSG is suspending its operations from 11.59pm on Friday (Aug 8), in what it calls a “strategic pause” as it prepares for a relaunch next year.
The company is the only car-sharing platform that offers point-to-point services in Singapore. This allows users to pick up a car at one location and return it at another.
Experts said its move to suspend operations was likely influenced by losses caused by an ageing fleet.
OPERATIONALLY CHALLENGING
GetGo’s chief executive and co-founder Toh Ting Feng said a point-to-point car-sharing model would present "significant operational challenges".
“It requires a substantial investment in infrastructure, such as dedicated parking and charging stations across the island, and a complex logistical network to ensure vehicles are properly distributed and maintained,” he told CNA.
"Our current model, which focuses on a 'point A to A' service, is a strategic choice that allows us to provide a reliable and consistent experience for our users without these complexities."
GetGo said that since its launch in 2021, it has seen "sustainable growth" – from over 400 vehicles and 10,000 users, to around 3,000 cars and half a million users in three years.
A photo of a GetGo car. (Photo: TODAY/Lim Li Ting)
Similarly, Tribecar’s co-founder Adrian Lee said it would be operationally more challenging and labour-intensive to offer point-to-point services, as cars could be parked in many different locations across Singapore.
"The primary challenge is that the current regulatory and infrastructural framework does not support the entry of new players into the point-to-point space," he said.
"Without a change in policy, it is not possible to launch such a service."
When asked if Tribecar may have plans to offer point-to-point services, he said the company's primary focus is to ensure users in heartlands have sufficient vehicles that are readily available.
Tribecar is only allowed to park registered cars that are specifically tagged to individual carparks that allow season parking.
The company has a fleet of 1,400 vehicles, an increase from an initial 350 vehicles five years ago. Mr Lee said Tribecar has seen a 35 per cent year-on-year increase in users over the past five years and described the car-sharing sector as a "competitive market".
A Tribecar vehicle. (Photo: TODAY/Raj Nadarajan)
Drive Lah's chief executive and co-founder Dirk-Jan Ter Horst said expanding into the point-to-point space was not on top of their list at the moment, but he did not rule out the possibility.
Drive Lah’s peer-to-peer model means car owners and commercial providers can rent out their vehicles on the platform, and users can lease these cars. Describing the company as an “Airbnb for cars”, Mr Ter Horst said the platform now has 275,000 users and about 2,000 cars.
Explaining why moving into the point-to-point space was not currently a top priority, Mr Ter Horst said its model means owners want their cars to be returned to their homes.
"We see the type of use cases where people take it a little bit longer, not just for half an hour but from point to point, but they return it.
“And actually, from a cost point of view, it still makes sense – because the cost for one day or renting for six hours may still be worth it instead of doing two point-to-point trips,” he added.
When asked if Drive Lah may in the future own a fleet to provide point-to-point services, he said this was "certainly possible".
A photo of a car on Drive Lah's platform. (Photo: Drive Lah website)
Transport analyst Dr Terence Fan said he does not think car-sharing operators will move into the point-to-point service space immediately.
The assistant professor at the Singapore Management University (SMU) noted barriers to entry, such as securing parking lots in sought-after locations and taking the time to grow to a "reasonable presence".
“The competition has grown significantly over the past few years. Now almost every medium-to-large housing estate has one or more dedicated car parks used by car-sharing operators,” Asst Prof Fan said.
“New entrants need to offer something more to be competitive.”
Related:
ACCREDITATION
There were 97 complaints about car-sharing services in the first half of this year, said the Consumers Association of Singapore (CASE) on Tuesday.
These complaints included pre-existing defects, poor maintenance, billing issues, high insurance excess and service reliability.
The watchdog said it was working with operators to develop a CaseTrust accreditation scheme for the sector. This is aimed at raising standards and giving customers peace of mind, said CASE president Melvin Yong.
"Consumer education will also play an important role as more people use car-sharing services. CASE will work with the industry to educate consumers on how to safeguard their rights and prevent disputes when using car-sharing services," Mr Yong told CNA on Thursday.
Car-sharing services are private commercial arrangements and are not regulated by the Land Transport Authority.
All three car-sharing operators told CNA they supported the accreditation scheme.
Tribecar's Mr Lee said it would "formalise the role of car-sharing as an integral part of Singapore's sustainable transport ecosystem and provide a clear set of standards for the industry".
"We have advocated for tough, comprehensive standards that will not only challenge us but also our peers and future entrants," he added.
"This is because we firmly believe that elevating the entire industry is the only way forward to ensure sustained growth and public trust."
Also read:
Similarly, Mr Toh believes accreditation and guidelines would provide consumers with greater transparency and confidence. GetGo is also working with CASE to develop the accreditation framework.
“GetGo fully supports any initiative that aims to raise industry standards and protect consumers,” he said.
“An accreditation scheme would formalise the high standards we already adhere to,” Mr Toh added.
"It would provide consumers with greater confidence and transparency. We view this as a positive development for the entire carsharing industry."
Mr Ter Horst welcomed the accreditation, but hoped there would not be too much administrative work involved for the private car owners on Drive Lah’s platform.
"What you don’t want to do is to scare people off ... you want to reduce the barrier as much as you can," he added.
Asst Prof Fan also supported the "proactive move" by CASE, saying it could provide incentives for operators to behave in a "transparent and responsible manner" if done properly.
"I hope the proposed accreditation won’t simply (be) biased towards incumbents, and can shield operators from unjustified comments (or) complaints," he added.
MAINTENANCE
Some users have complained about the condition of cars they used on car-sharing platforms.Both Tribecar and GetGo said their vehicles undergo regular maintenance at intervals recommended by the manufacturer, besides adhering to LTA’s inspection requirements.
GetGo’s Mr Toh said the company also conducts routine checks and has a system in place for users to provide real-time feedback.
Tribecar’s Mr Lee said its cars are taken out of service to be maintained typically at 10,000km to 15,000km intervals as recommended by the workshops. Almost all vehicles in the company’s fleet also undergo annual inspections, he added.
Besides reports by users on vehicle issues, Tribecar also proactively contacts “super users” in specific areas for their input on the vehicle’s condition, Mr Lee said.
Mr Ter Horst said Drive Lah does not face frequent reports of dirty vehicles or poorly maintained cars on its platform.
Although the company does not fully control how people maintain their cars, Drive Lah may block owners from offering their car on the platform if an issue has not been fixed, he added.
Mainly, owners who rent out their cars on Drive Lah keep them clean for their own use and personally maintain them, he explained.
"And also, if I'm renting your car, I feel that I need to be a little bit more careful when I use the car and that means issues like dirty cars – we hardly see it," he added.
Listen:
Continue reading...