Thailand's ride-hailing market is expected to intensify with the debut of Singapore-based Tada on Wednesday.
The service covers Bangkok now and is projected to expand to Nonthaburi, Pathum Thani and Samut Prakan in the near future.
Thailand is the company's fourth market. The platform touts zero commission fees and aims to break even in 3-5 years.
Tada also plans to set up an e-bike production facility in Thailand by year-end.
Tada Mobility (Thailand) was established in April 2023 with registered capital of 5 million baht.
Grab is the dominant player in Thailand's ride-hailing market. The other players are Lineman, Robinhood and Estonia-based Bolt.
Thailand's ride-hailing market is estimated at US$2.26 billion in 2024 and is expected to reach $4.60 billion in 2029, according to India-based market advisory firm Mordor Intelligence.
After becoming the second-largest ride-hailing platform in terms of trips in Singapore and becoming cash-positive, Tada expanded to Cambodia and Vietnam.
The company hopes its unique proposition of zero commission fees can attract Thais, said Sean Kim, chief executive of Tada Mobility Pte.
Mr Kim said Thailand is a priority market for the company, which will invest more to gain riders, offering coupons to passengers.
However, he said the company will not engage in a heavy marketing campaign.
Tada aims to transform the industry from being based on commission fees to a more sustainable model for drivers and passengers, ensuring the platform is cash-positive, said Mr Kim.
In Singapore, ride-hailing service has penetrated 70% of the population.
In Bangkok, the penetration rate slightly exceeds one-third of the population.
The market leader in Singapore has a 67% share, while No.2 is at roughly 30%.
Supatta Neamvanichakul, head of public affairs and policy at Tada Mobility (Thailand), said the zero commission policy will make drivers happy to provide the service. Drivers charge a platform fee to passengers.
Mr Kim said in Singapore, Tada charges the platform fee to both drivers and passengers. Under Thai law, the company charges a platform fee of 20 baht per ride to passengers only.
Tada is one of five ride-hailing platforms licensed by the Singapore Land Transport Authority over the past five years. It secured a ride-hailing licence from Thailand's Department of Land Transportation earlier this year.
Since its beta service launch in December 2023 in Thailand, the company has had 15,000 riders, both in taxis and private cars.
The company also plans to invest in e-bike production in Thailand, selling e-bikes to its riders to provide service to passengers, said Mr Kim.
Kay Woo, founder of Tada, said the company might raise funds later this year or next, but will not actively seek investors as it is sustainable.
Moreover, he said the company plans to expand the ride-hailing service in East Asia, with potential markets South Korea, Japan, Hong Kong and Taiwan.
From left are Ms Supatta, Mr Kim and Mr Woo at a press conference.