Singapore ride hailing service eyes African market

Photo source: TADA

A popular Singapore ride-hailing service plans to expand to Africa by the end of the year. TADA, which competes against the more popular local service providers - Grab and Gojek - intends to launch first in Kenya before branching out to Ethiopia and Tanzania.

Rather than taking a percentage-based commission – which typically hovers around 20% to 25% for many traditional platforms – TADA drivers pay a nominal fixed platform charge per ride and retain the remainder of the fare. This model has allowed the company to attract drivers in Asian markets who are frustrated by high percentage-based deductions. It has also gained traction with passengers, driven by competitive pricing and consumer support for the alternative compensation structure.

Founded in Singapore in 2018 by South Korean tech entrepreneur Kay Woo, TADA has steadily expanded its footprint to countries such as Thailand, Vietnam, and Cambodia. It has also launched services in Hong Kong and the US city of Denver, with plans for New York. Its parent company, MVLLABS, reported a revenue increase from S$27.5m (US$21.7m) in 2022 to S$46.4m (US$36.7m) in 2024.

TADA is now targeting the African market. Woo recently described Kenya as the "Singapore of Africa", viewing it as an ideal strategic entry point for the company's services. Alongside its ride-hailing app, TADA plans to introduce its electric tuk-tuks to Kenya. These three-wheeled vehicles, which utilse battery-swapping technology rather than plug-in charging, have already found traction for both passenger and cargo use in Cambodia. According to Woo, African countries share similar transportation needs and cost sensitivities with Southeast Asia, and the company is currently working to integrate its vehicles with Kenya’s existing battery-swapping infrastructure.

In Kenya, TADA will square off against the more established international service providers like Uber and Bolt, alongside local players such as Little. A bruising price war between these major apps has driven fares down to levels that many drivers say are unsustainable. Frustrated by shrinking margins and high platform commissions, Kenyan drivers have staged strikes and resorted to negotiating higher, off-app rates. This widespread dissatisfaction signals a landscape highly receptive to fairer pay structures. While TADA’s flat-fee model is well-positioned to capitalise on this, the Singaporean firm will not be the first to test alternative models in the region. Local Kenyan platform Rapid Ride has already introduced a subscription-based, zero-commission service, while inDrive operates on a negotiated-fare model. Given these existing alternatives, TADA will face immediate competition for the very drivers it hopes to attract.

 

References

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