This model allows passengers and drivers to agree on prices, promoting a more balanced ride-hailing environment
by AUFA MARDHIAH
INDRIVE has achieved a 200% increase in the number of rides in Malaysia in the first half of 2024.
The global ride-hailing platform’s customer base, including both passengers and drivers, has also grown by over 20% since the beginning of the year.
It entered the Malaysian market in late 2021 with presence currently in Selangor, Kuala Lumpur (KL), Penang and Johor Bahru.
inDrive’s strategy is aimed at tackling key issues identified through market research, such as high fares for passengers and high commission fees for drivers.
By addressing these challenges, inDrive sought to create a more balanced and sustainable ride-hailing environment in Malaysia.
During a recent media luncheon in KL, inDrive’s Asia Pacific marketing director Natalia Makarenko highlighted the rapid growth of the ride-hailing market in South-East Asia.
She noted that the market is projected to reach US$8.87 billion (RM36.99 billion) by 2024, with an annual growth rate of 5.39% expected until 2029.
By then, the market could be worth US$11.5 billion, with 218.5 million users and a user penetration rate of 30.4%.
The average revenue per user is forecasted to hit US$125, with all revenue coming from online sources by 2029.
Makarenko also provided insights into the Malaysian market, where ride-hailing is predicted to reach US$480 million by 2024, growing at an annual rate of 3.5% until 2029, when it is expected to reach US$570 billion.
Rapid Expansion
Originally named inDriver (short for Independent Drivers), inDrive started in 2012 in Yakutsk, Russia.
It has expanded rapidly and operates in various regions worldwide, including Latin America, Africa, Asia and the Middle East.
The platform offers services similar to other ride-hailing apps, such as car rides, courier services and even cargo transport.
Over time, inDrive has grown into one of the largest mobility platforms in terms of geographic presence.
inDrive is known for its distinctive approach to ride fares. Unlike traditional ride-hailing platforms like Uber or Lyft, inDrive allows passengers and drivers to negotiate the fare before the ride begins.
The peer-to-peer bargaining system empowers both parties to agree on a mutually acceptable price, rather than relying on an algorithm-based fare structure.
Makarenko further explained that inDrive’s fare negotiation feature is a new concept for the Malaysian market, initially presenting challenges in communicating its benefits.
“People are accustomed to simple, algorithm-based apps, where they often worry about both the price and the quality of the service.
“For us, however, our role as a marketing tool is not only to introduce the product to the market but also to show the audience the benefits of having the freedom to negotiate the fare,” she said to The Malaysian Reserve (TMR), highlighting flexibility to negotiate fares and customise rides based on factors like car size, driver rating and estimated arrival time with inDrive.
The system allows passengers to choose their drivers and negotiate fares, while drivers have the flexibility to select passengers and routes, offering a level of freedom not seen in traditional ride-hailing platforms.
She further noted that the company’s focus now is on educating both passengers and drivers about the advantages of this system, demonstrating how it offers a more personalised and cost-effective alternative to other ride-hailing services.
Gig Economy and EV Introduction
Recognising the growing importance of the gig economy both globally and in Malaysia, inDrive business development lead for Malaysia Govin Kumaar Panirsheeluam said the company is playing a vital role in supporting gig workers by providing essential tools to help them sustain their livelihoods.
Understanding the need to protect gig workers both economically and socially, inDrive has introduced daily insurance products to safeguard drivers.
These offerings ensure that drivers, particularly those who do not work full-time, can access protection that meets their needs.
The company’s initiative makes it easier and faster for drivers to obtain the necessary licences to work with inDrive.
Govin highlighted several key initiatives aimed at improving driver experience and addressing challenges in the ride-hailing market.
Among them are partnerships that provide discounted car rentals and insurance, making it more affordable for drivers to operate, particularly in areas like Klang Valley, where driver shortage has led to longer wait times and frequent booking cancellations.
Apart from that, inDrive is also planning to expand its driver support centres, specifically in the northern and southern regions of West Malaysia, to strengthen the support system for its drivers.
Additionally, the company is exploring the introduction of an electric vehicle (EV) fleet to promote sustainable transport.
“Malaysia is moving towards EV adoption, and we have noticed a rise in the number of EV models available, compared to when there were only a few players in the market.
“This is something we want to pursue, as it would provide a better experience for both drivers and passengers, while also aligning with government initiatives focused on environmental sustainability,” he told TMR.
While inDrive plans to incorporate EVs into its fleet, the transition will depend on several factors, including regulatory compliance, infrastructure availability and driver adoption. The company is closely monitoring these developments to ensure that drivers can afford, charge and maintain EVs effectively. inDrive is committed to providing a smooth transition towards EVs, aiming to create a better environment for both drivers and passengers while contributing to the government’s sustainability goals.
Pursuing Sustainability
inDrive is actively working towards sustainability through its inVision initiative, which is part of the company’s broader mission to create positive environmental and social change.
In addition to exploring EVs as a sustainable mobility option, inDrive is developing several social impact projects in Malaysia, which are currently in the early stages, with the aim of creating opportunities that benefit local communities.
Makarenko highlighted that inVision focused on maximising positive impacts through a variety of environmental and social projects. The initiative’s goal is to improve lives worldwide by supporting various programmes.
One such programme is BeginIT, which identifies talented children from orphanages, boarding schools and rural areas, introducing them to future technologies and sparking their interest in IT careers while fostering personal development.
Another project, the Alternativa Film Awards, seeks to elevate underrepresented filmmakers by providing them a platform to showcase their work.
The Supernova programme works to find football coaches to train children, offering a safe space for them to develop their well-being and personal growth.
YourPace promotes physical fitness and healthy living, while the Aurora Tech Award supports women founders of tech start-ups globally.
Lastly, the Underdog Tech Award recognises the best startups located outside of major tech hubs around the world.
These projects highlight inVision’s dedication to advancing education, creativity, health and entrepreneurship on a global scale.
On the timeline for these projects, Makarenko said while specific dates cannot be confirmed, future initiatives from other regions may be introduced in Malaysia as opportunities arise.
Currently, the company is still exploring the best ways to contribute to sustainability and community support in the country.
Strengthening Local Presence
Makarenko emphasised inDrive’s effort in localising its brand marketing efforts to better connect with the Malaysian audience.
While maintaining its global presence, the company aims to ensure that its brand is not only recognisable but also understood and appreciated in the local market.
For instance, inDrive incorporates local slang like “kawtim” on its vehicles in KL, enhancing its connection with the culture and community.
The company also forges community partnerships, such as a recent campaign with local food chain Kedai Kopi Malaya for Malaysia Day.
In terms of services, inDrive continues to focus on mobility but plans to expand into areas like intercity and cargo rides, as well as exploring opportunities in the financial technology sector.
“We are also considering entering the food tech (delivery) market, given its size in Malaysia. However, food tech operations can be quite complex, so we need to carefully evaluate this sector before committing,” Makarenko said.
The company’s approach remains strategic and lean, aiming to maintain sustainable, affordable prices while thoughtfully expanding its services.
Regulatory Compliance
Commenting on the company’s commitment to adhering to local regulations in the Malaysian market, Govin reaffirmed that inDrive is collaborating with authorities to ensure full compliance.
The dedication was recently demonstrated by the renewal of its operating licence for an additional two years.
The company maintains ongoing communication with local authorities, ensuring its services remain in line with Malaysian legal standards.
Govin addressed concerns about Transport Minister Anthony Loke’s statement regarding the absence of approval for price bidding systems in e-hailing services.
inDrive is currently in discussions with the ministry about its price bidding system, noting that it has submitted an official letter and is awaiting a response.
He noted concerns that the bidding system might raise prices, but assured that drivers will operate within regulations and all bidding will occur in the app, reinforcing the company’s goal of a fair marketplace for drivers and passengers.
While formal meetings with the ministry have yet to take place, Govin confirmed that inDrive is actively working with the Land Public Transport Agency to ensure full compliance with regulatory requirements.
“It takes time, but we are committed to resolving this issue,” he added.
Govin’s response comes after the Transport Ministry’s statement in May 2023, which clarified that no price bidding systems for e-hailing services had been approved.
- This article first appeared in The Malaysian Reserve weekly print edition