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AirAsia Launches an Online Ride-hailing Service in Malaysia

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AirAsia Launches an Online Ride-hailing Service in Malaysia

A Malaysian company, AirAsia launched the super application (super-app) airasia.com last October (8/10/2020). The airline also plans to explore ride-hailing services for online taxis and motorcycle taxis in Malaysia, such as Gojek and Grab.

AirAsia founder and CEO Tan Sri Tony Fernandes said the service would be available after the corona pandemic was over. “We will soon launch a ride-hailing service in Malaysia,” he said as quoted from e27, Tuesday (30/3).

He said online taxi and motorcycle taxi services would be integrated with the airline business. Ride-sharing services were first provided by Gojek and Grab in Southeast Asia. Even so, Fernandes did not feel left behind. In fact, AirAsia benefits, because the market has already been established.

AirAsia Launches an Online Ride-hailing Service in Malaysia

“I don’t have to waste all the money on experiments, building technology, training drivers and markets on how to order. They (Gojek and Grab) have done everything for me,” he said. Grab has been present in Malaysia since 2012, under the name GrabTaxi. The company then moved its head office to Singapore in 2014.

Last year, this decacorn piloted an online motorcycle taxi service in a neighboring country. In Malaysia, local startup Dego Ride has also tried an online motorcycle taxi service. Other competitors are EzCab, MyCar, Dacsee, MULA, and Riding Pink.

Had already Explored Food Delivery Services

Before exploring ride-hailing, AirAsia first launched a food delivery service in Singapore. This is a pilot for food delivery services using drones or drones. AirAsia has also launched hotel and airline ticket booking services.

The company hooked up with Kiwi.com last year and added a multi-city feature for booking tickets on AirAsia.com. It allows users to book flight tickets to various domestic destinations in Indonesia.

AirAsia Launches an Online Ride-hailing Service in Malaysia

AirAsia also plans to develop other products, namely logistics that support the delivery of e-commerce goods. AirAsia will rely on the cargo company Teleport Indonesia to enter the logistics market.

The airline also revealed that it plans to enter the fresh product delivery market in Singapore. With this service, users can order imported fish from Japan or South Korea directly to their homes in 48 hours.

AirAsia also wants to provide digital platform-based health services. AirAsia will compete with Grab and Gojek which present similar products through GoMed and GrabHealth. In Indonesia, the two decacorns are collaborating with health startups, namely Halodoc and Good Doctor.

Expanding Business in the Financial Sector

AirAsia will also explore the financial sector. The company owns BigPay which was launched in 2018. The service allows users to send, borrow money, or pay without having to transfer from a bank. Consumers can also choose the foreign currency they want to use.

The company also wants to provide loan services or financial technology (fintech lending). In the financial sector, AirAsia has also applied for a digital bank license in Singapore. This airline will compete with Grab and its parent Shopee, which have received permission from the authorities in the Lion Country.

AirAsia Launches an Online Ride-hailing Service in Malaysia

The company’s efforts to launch various digital services are made so that it can compete with Grab to Gojek in developing super apps. However, based on The Edge’s report, the company experienced a net loss in the fourth quarter of 2020 reaching US$ 5 billion.

AirAsia is viral because it opens a food delivery service branch in Singapore. It turns out that this food item has been planned since before the pandemic. The delivery service is developed by AirAsia. The launch of the AirAsia food delivery service was carried out on Tuesday (2/3).

So far, it already has 500 riders and 300 other food operators are in the process of joining. Indeed, this service can only be enjoyed in Singapore. Later AirAsia Food will launch it in Thailand, Indonesia, the Philippines before the end of the year.

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