Car-sharing operators face roadblock from ride-hailing firms Grab and Uber
A Car Club car-sharing station near Kallang MRT Station. Photo: Nuria Ling/TODAY
SINGAPORE — Polytechnic librarian David Yeo, 52, gave up his car 14 years ago and takes public transport to work. But once a month, he rents a car from Car Club, of which he has been a member for nearly a decade, for family outings to parks and other places.
While happy with the flexibility a shared car brings, he now has access to more convenient alternatives, such as Grab and Uber.
To collect his shared car, the Geylang East resident has to take a train from Aljunied to Kallang, where the nearest car-sharing station is located. After his trip, he returns the vehicle to the same point before returning home by train.
By contrast, getting a private-hire car is “trouble-free”, as the ride begins and ends at his doorstep, he said.
In recent years, the rise of the private-hire car industry led by Grab and Uber has emerged as the biggest threat to car-sharing operators here.
Public interest in car-sharing was reignited last week, when operator BlueSG’s electric cars hit the roads under the country’s first large-scale electric car-sharing scheme. Since emerging in the Singapore market two decades ago, car-sharing operators have grown their fleets and clientele steadily over the years. While they have kept nimble by constantly evolving their business, they now face a huge challenge with ride-hailing firms muscling in on the territory.
GROWING NUMBERS
There are currently at least five car-sharing operators in Singapore, and a number of them have expanded their fleets over the years.
WhizzCar, set up in 2003, has about 150 shared cars, compared with about 90 three years ago.
Car Club, one of the bigger car-sharing players founded in 1997, runs a fleet of more than 270 cars, up from 175 last year.
Another operator, smove, which entered the market in 2012 with an electric car-sharing programme, had to switch to hybrid vehicles in 2014 as it could not get more electric cars owing to commercial restrictions then. Its fleet has since grown to 450 cars over the last three years, said its chief operations officer Joseph Ting.
A more recent entrant, Tribecar, has about 250 cars, compared with just 10 when the company began operations two years ago.
Their membership figures have also grown. Car Club has nearly 8,000 members, WhizzCar’s base has surpassed 3,000, and smove has 60,000 registered users. Tribecar declined to reveal its numbers.
BlueSG, which launched its electric car-sharing service last Tuesday with more than 2,000 members, recorded over 800 rentals in the first three days of operations, its spokesperson told TODAY.
This means each of its 80 cars was rented more than thrice daily over that period.
WhizzCar managing director Ho Kok Kee said more Singaporeans became aware of the car-sharing concept after car prices shot up in 2009 and 2010, which resulted in many shying away from car ownership.
There are obstacles to overcome, as smove’s Mr Ting said many Singaporeans are still not familiar with car-sharing and its benefits, and are hesitant to rent cars for fear of hidden costs and bad service.
The success of car-sharing services has also been somewhat patchy, with players like KahShare — which was previously part of Honda distributor Kah Motor — exiting the industry.
In recent times, operators have also had to contend with competition from Grab and Uber, as well as a public transport system that has seen massive investment from the Government.
STAYING AHEAD OF THE COMPETITION
Car Club has taken various steps to stay ahead of the curve, including rolling out a loyalty rewards programme allowing members to earn NTUC LinkPoints when they use the firm’s cars.
The company has also marketed its membership perks “in a bigger way” in the last year or two, said its managing director Gary Ong. Members can tap into a range of perks, including a special package under a tie-up with Legoland Malaysia in Johor.
The company has also linked up with car-sharing partners in Malaysia and Indonesia to allow its members access to such services overseas.
Tribecar, meanwhile, has diversified its fleet from “economical” cars to hybrid and premium ones, and recently added commercial vehicles.
An hourly motorcycle-sharing service is also in the works, said its co-founder Adrian Lee, and it is also exploring a bicycle-sharing service with high-end two-wheelers.
CHALLENGES REMAIN
Car-Sharing Association (Singapore) president Lai Meng cited the “cultural preference” among Singaporeans to buy rather than rent cars as a challenge.
The industry’s growth also hinges on the availability of parking infrastructure. “Car-sharing operators do need the support and help of the city planners and authorities to grow,” said Mr Lai.
Typically, users pay S$9 to S$15 an hour to use cars from firms like Car Club and WhizzCar, with costs varying based on the vehicle model and duration of use. The hourly rate can dip as low as S$2 at Tribecar during off-peak hours.
BlueSG’s premium members pay 33 cents a minute — or S$19.80 an hour — to rent a car. Members on a weekly plan pay a higher rate of 50 cents a minute.
The car-sharing firms’ clientele spans a broad mix, from freelancers to those renting cars for errands or family jaunts to Malaysia.
Mr Lawrence Chong, 41, who sold his car over a year ago, said using a shared car made “more sense”, as he noted that bookings via ride-hailing firms Grab and Uber are subject to dynamic pricing, with fares soaring when demand goes up.
The cost savings have made it worthwhile for him to forgo his car. Alternating between shared cars, the MRT and Grab or Uber rides, he forks out up to S$350 each month, which is significantly lower than the nearly S$1,000 he spent monthly when he had a car.
The information technology engineer said: “It really makes more sense (to use a shared car). Sometimes I just love the idea of driving myself and just going out with my wife, the two of us running errands (and enjoying) the privacy and time together.”
