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Grab facing off against Tesla taxis in Indonesia
[JAKARTA] In 2015, the shares of Indonesia’s largest cab company were soaring, while its revenue reached a record high. Then came Uber, followed by Grab and Gojek, South-east Asia’s answer to the revolutionary ride-hailing app.
Competition from the technology titans wiped out US$1.7 billion, or almost 80 per cent, of PT Blue Bird’s market value from a peak. Revenue plunged 23 per cent in three years and the latest quarterly earnings fell to a record low. But rather than give up, the 54-year-old cab operator is now seeking to turn the tide. Leading the effort is Noni Purnomo, who succeeded her father in May as president.
Four months into her new job at the Jakarta-based company, Ms Purnomo is banking on technology to transform the flagging business her late grandmother started in 1965. Her plans include focusing on electric vehicles (EVs) made by Tesla Inc and BYD Co to cut fleet ownership costs and improve efficiency using data.
“We decided to take a huge leap,” Ms Purnomo, 47, said at her office in Jakarta last week. “With this leap, we hope we can address our shortcomings” and catch up with rivals.
While sustainability is her immediate priority, Ms Purnomo’s goal eventually is to beat the ride-hailing giants that have upended what was once an industry renowned for its steady revenue and dominated by small owners and families like Ms Purnomo’s. She’s up against Singapore-based Grab, the regional giant that bought Uber Technologies Inc’s South-east Asian operations last year.
Source: https://www.businesstimes.com.sg/garage/grab-facing-off-against-tesla-taxis-in-indonesia