KUALA LUMPUR: Southeast Asia's e-hailing market is expected to sparkle in years to come as the number of users rises across the region.
Hence, e-hailing service provider inDrive is optimistic about its outlook in the region, and is positioning itself as a key regional player.
InDrive marketing director of Asia Pacific Natalia Makarenko said Southeast Asia's ride-hailing market is expected to reach US$ 8.87 billion by 2024.
Makarenko said the Malaysian market specifically, is set to grow at a compounded annual growth rate of 3.5 per cent from 2024 to 2029, reaching a projected market value of US$570 million (about RM2.48 billion) by 2029.
"The number of users in the Malaysian ride-hailing market is expected to grow significantly, reaching 11.47 million by 2029, with user penetration increasing from 28.1 per cent in 2024 to 31.5 per cent by 2029," she told the media at an inDrive media luncheon this week.
Makarenko claimed that the company had achieved impressive milestones, with a 20 per cent increase in rides and a 21 per cent jump in active users during the first half of 2024.
The number of active drivers is also expected to increase by 23 per cent, reflecting the rising demand for inDrive's "unique" ride-hailing services in Malaysia.
"The Malaysian market is one of our key growth areas in Southeast Asia, and we are committed to delivering innovative, community-focused mobility solutions that resonate with local needs.
"Our goal is to not only provide a better ride-hailing experience but also to be a meaningful part of the communities we serve through sustainable practices and impactful initiatives," she said.
To support its growth and enhance its offerings, inDrive is rolling out several strategic initiatives in Malaysia.
Makarenko said its future plans will focus on improving the overall driver experience. This includes the introduction of enhanced benefits such as insurance coverage, loyalty programmes and training support.
"Additionally, inDrive plans to expand driver support centers to key cities like Penang and Johor Bahru and is exploring the potential launch of an Electric Vehicle (EV) fleet to promote sustainable and innovative mobility solutions," she said.
Since entering the Malaysian market, inDrive has expanded its footprint to urban agglomeration and major cities including Penang and Johor Bahru, apart from Kuala Lumpur.
inDrive's business development lead for Malaysia Govin Kumaar Panirsheeluam said the company is set to expand its operations to Melaka by the end of this year, driven by rising demand and the state's ongoing Visit Melaka tourism initiative.
"Melaka's booming tourism industry and the increasing number of user penetration in the state, played a significant part in the company's expansion plans. We will probably be looking at this market soon," he said.
When asked to comment on the issue of inDrive's price bidding system, Govin said the company is in discussions with the Transport Ministry.
The company has submitted an official letter to the ministry on the issue and is awaiting a response.
"Apparently, the public are concerned that such a bidding system would force customers to pay higher prices. However, we will ensure that our drivers operate within regulations, and all bidding will strictly occur within the app's ecosystem.
"This ties with our mission as well, in creating a fair marketplace for drivers as well as the passengers," he said.
While inDrive has not yet had formal meetings with the ministry, Govin confirmed that the company is in active discussions with the Land Public Transport Agency (APAD) to ensure compliance with all regulatory requests.
"It takes time, but we are committed to resolving this," he added.
In May last year, Transport Minister Anthony Loke said the ministry had never approved a price bidding system for e-hailing operators.
He was asked to comment on the growing popularity of a bidding system that allows users and drivers on e-hailing apps to negotiate on a fare before agreeing upon the rate.
Loke said his ministry had never been informed of the system and that he had asked APAD to investigate it.