IMPACT OF GRAB ON SINGAPORE BECOMING A CAR-LITE SOCIETY

Abstract

The inception of ride-hailing in Singapore since 2013 has provided commuters an alternative mode of transport with increased convenience and cost savings. Over the last five years, ride-hailing platforms such as Grab have been offering last mile commute services and filling the demand gaps left by the taxi industry. While Singapore’s ride-hailing industry used to be dominated by Uber and Grab, the recent acquisition of the former’s Southeast Asian operations by the latter in March 2018 has sparked a huge public debate as lesser competition would mean higher ride prices and fewer discounts. As Singapore continues to move towards a car-lite society, this dissertation aims to study Grab’s impact on public transport ridership and traffic congestion.

An online survey was conducted to gather users’ commute behaviour and opinions on Grab. Survey results showed that majority of the participants were in favour of Grab’s services, with convenience being the primary reason for using ride-hailing services. It was hypothesized that ride-hailing frequency does not affect public transport usage frequency and has no effect on perceived change in traffic congestion due to Grab. Statistical analysis also revealed that a higher ride-hailing frequency results in fewer people using public transport. Participants who frequent ride-hailing services have a higher tendency to agree that ride-hailing helps to reduce traffic congestion in Singapore. Furthermore, those who were more satisfied with Grab’s services – found car ownership less of a necessity – thus supporting Singapore’s vision of a car-lite society. This study concludes that Grab should continue to partner the authorities for future transportation planning purposes.

Keywords: Ride-hailing, Grab, Competition, Car-Lite Society, Congestion, Car Ownership