The current ridesharing landscape in Southeast Asia.

1. Ride Sharing in Southeast Asia
AN OVERVIEW OF THE ASEAN LANDSCAPE
CREATED BY DYLAN LER

2. Economics of South East Asia

3. Key Takeaways
ASEAN’s total population at 625 million people makes it a HUGE market for
global players like Uber.
With a current GDP of $2.4 billion and increasing RAPIDLY, it is a region to
worthy of paying attention and scaling market share.

4. Addressable Market
Ranking Name Country Population
1 Jakarta Indonesia 10,135,030
2 Bangkok Thailand 8,305,218
3 Ho Chi Minh City Vietnam 7,981,411
4 Hanoi Vietnam 7,067,000
5 Singapore Singapore 5,399,000
6 Yangon Myanmar 5,451,439
7 Surabaya Indonesia 2,843,114
8 Quezon City Philippines 2,761,720
9 Bandung Indonesia 2,575,478
10 Bekasi Indonesia 2,510,951

5. Continued
Ranking Name Country Population
11 Medan Indonesia 2,185,789
12 Tangerang Indonesia 2,001,925
13 Hai Phong Vietnam 1,946,000
14 Depok Indonesia 1,869,681
15 Manila Philippines 1,652,171
16 Semarang Indonesia 1,575,058
17 Palembang Indonesia 1,561,959
18 Caloocan Philippines 1,489,040
19 Kuala Lumpur Malaysia 1,475,337
20 Davao City Philippines 1,449,296
TOTAL ADDRESSABLE MARKET:
APPOXIMATELY 72 MILLION PEOPLE

7. Smartphone Users & Penetration
Country Smartphone users
(millions)
User penetration (% mobile phone
users)
Indonesia 55.4 37.7
Philippines 26.2 36.6
Vietnam 16.6 36.2
Thailand 15.4 39.2
Malaysia 8.9 46.6
Singapore 3.8 85.2
Total 126.3 Percentage increasing every year

8. Key Takeaways
In theory, total population of Southeast Asia is about 625 million people (HUGE POTENTIAL).
However, it is important to capture market share in large cities FIRST (about 72 million people
in just 20 largest cities) as smartphone and data penetration is high.
Smartphone ownership is at about 126 million in just the 6 Southeast Asian Powerhouse
(Thailand, Indonesia, Malaysia, Singapore, Vietnam, Philippines) with tremendous growth rate.
Hence, market leaders should move fast to expand from cities to cities (in different countries)
around Southeast Asia and NOT focus resources on a single country at a time.
To scale at a high pace, market leaders should hire local operations team (who understand the
market landscape) in a new city from the ground up. This will be more cost effective in the long
run compared to transferring teams from one country into a new country. (For example from
Uber USA to Uber Thailand)

9. Legality & Status
Country Legal Status Ease of
Operation
Important Notes
Indonesia Given permission to
operate. On March 2016, a
new decree which puts
obstacles to Uber has been
made public.
Yellow light 1. New decree states companies
cannot work with private car
owners.
2. Apps cannot set fares and recruit.
3. Companies must disclose data to
government.
Philippines Approved & legalized
nationwide.
Green light 1. Cars need to be GPS-equipped and
less than 7 years old.
Vietnam Permitted to operate if cars
registered as taxis.
Yellow light 1. Insist that ride sharing companies
comply with taxi regulations.

10. Continued
Country Legal Status Ease of
Operation
Important Notes
Thailand Still illegal pending reviews. Red light 1. Government recently suspended
Uber & Grab’s motorcycle services.
Malaysia Recently announced to be
legalized.
Green light 1. New proposal to integrate ride
sharing companies and local taxis in
the works.
Singapore Approved & legalized with
strict regulations.
Green light 1. Vehicles must be registered under
Land Transport Authority (LTA)
2. Drivers must complete government
approved 10 hour course.
3. Drivers must go through medical &
background screening.

11. Key Takeaways
Uber faces heavy backlash in majority Southeast Asian countries from local taxis which in turn
forces local government to treat Uber as a taxi company (with the same regulations) to satisfy all
parties.
Governments decisions’ to legalize ridesharing is a good sign. However, strict regulations
stifles Uber’s growth in the country.
Foreign ridesharing companies like Uber must work to convince local government that it is a
technology company and not a transportation company.
Companies should consider setting up local entities and incorporate as a company locally to
fuel growth at a faster pace.

12. Major Players

13. Localization
Motorcycles
In Southeast Asian cities, heavy traffic congestion and a cheaper price tag makes motorcycle ownerships
high.
For ride sharing companies to capture market, it is strategic to launch ride sharing motorcycles in certain
cities to capture market share.
Cities like Bangkok, Jakarta, Manila are noteworthy.
Using cash
In majority Southeast Asian countries, credit card and electronic payment infrastructure has not been fully
established. By allowing cash transactions, companies can capture market share first while the country
transitions to electronic/card payments.

14. Localization
Incorporating as local companies
By incorporating locally, foreign companies can hire local operation teams that are familiar with the local
landscape. It is also cost effective and will ensure local government’s trust in the company.
Country Top Messaging Apps
Malaysia Whatsapp
Singapore Whatsapp
Thailand Line
Philippines Messenger
Indonesia Blackberry Messenger (BBM)
Vietnam Zalo, Line
Local Social Media
Southeast Asia is a buzzing region with high social media activity.
Knowing the top messaging apps in each country will allow
companies to conduct strategic ads and promotions to lower
customer acquisition cost.

15. Reference
1. https://en.wikipedia.org/wiki/List_of_cities_in_ASEAN_by_population
2. https://www.techinasia.com/talk/digital-southeast-asia-q4-2015
3. http://www.emarketer.com/Article/Asia-Pacific-Boasts-More-Than-1-Billion-Smartphone-Users/1012984
4. http://jdih.dephub.go.id/assets/uudocs/permen/2016/PM_32_Tahun_2016.pdf
5. https://www.techinasia.com/indonesias-new-transportation-regulation-uber-grab
6. http://time.com/3854958/uber-legal-philippines-ride-hailing/
7. . https://newsroom.uber.com/philippines/arriving-now-progressive-ride-sharing-regulations-in-the-philippines/
8. http://www.thanhniennews.com/business/uber-ordered-to-respect-vietnam-laws-when-running-cabhailing-service-40073.html
9. http://www.bangkokpost.com/tech/local-news/975773/make-us-legal-pleads-uber
10. http://www.bbc.com/news/business-36328840
11. http://www.thesundaily.my/news/1932155
12. http://www.straitstimes.com/singapore/transport/parliament-uber-grabcar-drivers-to-have-vocational-licences-undergo-background
13. https://www.similarweb.com/blog/worldwide-messaging-apps
14. http://www.statista.com/statistics/258749/most-popular-global-mobile-messenger-apps/