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Home » AirAsia’s Tony Fernandes Plans to Enter the Ride-Hailing Market in the Philippines
Business

AirAsia’s Tony Fernandes Plans to Enter the Ride-Hailing Market in the Philippines

AirAsia's Capital A plans to disrupt Grab's dominance with affordable ride-hailing services in the Philippines.
Team MetroguideBy Team MetroguideJune 10, 2023No Comments3 Mins Read
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AirAsia’s parent company, Capital A, led by CEO Tony Fernandes, is set to launch a ride-hailing firm in the Philippines to compete with Grab, the dominant player in the market. This expansion is part of AirAsia’s broader strategy to diversify its offerings and tap into the growing demand for affordable transportation services. With plans to hire full-time drivers and provide benefits such as insurance, AirAsia aims to differentiate itself and make a significant impact in the Philippine ride-hailing industry.

AirAsia

Table of Contents

  • Expanding Ride-Hailing Services
  • Unique Business Model
  • Job Creation and Economic Impact
  • AirAsia Potential Partnerships and Fintech Ventures
  • AirAsia Super App Plans and Digital Expansion

Expanding Ride-Hailing Services

AirAsia, a well-known low-cost carrier, has been providing ride-hailing services in several markets, including Malaysia. Now, the company has set its sights on the Philippines, aiming to launch its ride-hailing platform soon. Tony Fernandes believes that AirAsia’s entry into the market will bring healthy competition, offering more affordable options to customers and making a significant impact at airports, where transportation demand is high.

Unique Business Model

AirAsia’s ride-hailing venture in the Philippines will adopt a unique business model. Unlike traditional ride-hailing platforms, AirAsia plans to hire full-time drivers who will be entitled to benefits, such as insurance coverage. This approach aims to provide a stable source of income for drivers while ensuring their well-being and financial security. By prioritizing the welfare of its drivers, AirAsia hopes to attract and retain a dedicated workforce, ensuring a reliable and efficient service for customers.

Job Creation and Economic Impact

The launch of AirAsia’s ride-hailing services in the Philippines is expected to generate around 2,000 jobs in the country over the next two to three years. This employment opportunity will contribute to the local economy and provide individuals with a stable source of income. Additionally, if the venture succeeds, the number of jobs created could potentially be even higher. AirAsia’s expansion into the ride-hailing market aligns with its goal to support economic growth and development in the regions it operates.

AirAsia Potential Partnerships and Fintech Ventures

During his visit to the Philippines, Tony Fernandes plans to meet with Transport Secretary Jaime Bautista to discuss AirAsia’s ride-hailing venture. Furthermore, Fernandes aims to explore potential partnerships with local conglomerates for Capital A’s fintech venture, Big Pay. This demonstrates AirAsia’s commitment to fostering collaborations and leveraging synergies to enhance its service offerings and extend its presence in various sectors.

AirAsia Super App Plans and Digital Expansion

AirAsia’s parent company, Capital A, has been actively building its digital businesses and working towards the development of a digital super app. In response to the challenges posed by the COVID-19 pandemic, which led to grounded planes and reduced air travel, the company focused on diversifying its offerings. The super app will aim to emulate the success of regional tech giants such as Grab and Gojek, providing customers with a range of services beyond just flights, including ride-hailing, food delivery, and payment solutions.

AirAsia’s entrance into the ride-hailing market in the Philippines marks a significant expansion for the company and a potential challenge to Grab’s dominance. With a unique business model that prioritizes driver benefits and the intention to offer competitive pricing, AirAsia aims to carve out a substantial market share. The venture is not only expected to create employment opportunities but also contribute to the overall development of the local economy. As AirAsia continues to build its digital ecosystem, including the upcoming super app, the company is poised to transform the way people experience and engage with various services in the Southeast Asian region.

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