Grab and GoJek are losing money with incentives and discounts and by doing so, spoilt the market.
Tada started off with the right principles of not going into a price war as it is not sustainable. Not charging commission was another good move to attract a certain group of drivers and gaining their support.
But when Tada’s fares are lower than competitor’s fares even after 20% commission deduction, this group of drivers may be discouraged to continue supporting Tada even though the “No Commission” reminder is always there.
Fact! No driver, No service.
Grab App is programmed at ridiculously low fares. If Tada follow their fares, you are making drivers look like fools.
Grab App is also programmed for demand. The moment many bookings come from a certain area and going to a certain area, the algorithm kicks in and the price surges.
Any price surge on Grab, results in huge demand on Tada. Otherwise, there will be no calls on Tada.
Reason Tada is a secondary choice is because pax have bad impressions on it. The most common reason is “Cannot get Driver”
Of course cannot get driver when the fares are so low when Grab is surging.
The exact opposite would be drivers complaining about no pings when Grab fare is lower than Tada.
Only way to solve the problem is Tada stick to its principles of not going into a price war.