While many of us still can't easily decide if we should ride Uber or Grab, decision-making is going to get even harder with the entry of a new player.
SixTNC officially made its debut here on Sunday (June 18); and there are already about 100 of its drivers plying the road today.
The 10-month-old Indonesian firm has made some very bold claims so far: its drivers can earn an annual six-figure income by driving just 8 hours a day.
This is its differentiating factor from its two rivals.
"I have noticed a lot of Uber or Grab drivers work long hours for not a lot of money. We started this so that drivers need to only work eight hours a day," SixTNC managing director James Lee told The Straits Times.
But 8 hours is like the typical working hours of a regular office worker, so how is it possible to earn so much in so little time?
How does it work?
According to Lee, their business model is centred around a referral scheme.
A driver who recommends another individual to join the scheme will take a 5 per cent cut of the latter's earnings. Commuters too will get to earn a 5 per cent commission if they recommend a driver to SixTNC.
At the end of the day, drivers get to keep only 80 per cent of their earnings, with the remaining 20 per cent paid to SixTNC.
But if a driver ropes in 30 friends to get them onboard SixTNC - assuming all of them earn $150 a day - an annual income of $100,000 is possible, said Lee.
If we break down this figure, it's equivalent to earning about $8,300 a month!
Upon hearing this, my colleagues remarked that it sounds very much like multi-level marketing. (We have a good mind of applying to be their driver to check if this claim holds true).
Anyway, here's a food for thought before you tender your resignation letter: how easy is it to consistently earn $150 a day?
Is this claim just a 'carrot' to entice people to jump on the SixTNC bandwagon?
They are after all, very new to the market, and it would be hard for them to vie for a slice of the traditional taxi market share.
SixTNC vs. Grab vs. Uber - Which Is Cheaper?
It's been three days since SixTNC's launch in Singapore, but it's not clear how the take-up rate has been so far.
According to ST, Lee was unable to verify the number of drivers or passengers who have used their service as their "control panel is not in Singapore".
But for consumers, I reckon low price-points are a simple way to sway their brand loyalty. So if SixTNC offers cheaper rates than its rivals, I foresee them gaining a huge market share in no time.
I did a quick test on all three apps to differentiate their fares (for a fair comparison, I selected the Standard option, and input the same pick-up location and destination points for all three):
Conclusion? SixTNC's fare is comparable to the other two players, making them a viable player.
The fares all fall under the same price range, with a difference of only $2.
And despite being a fresh player in the market, SixTNC is not rolling out any promo codes which I think does not settle well with kiasu Singaporeans, who love anything on a bargain.
Meanwhile, Grab and Uber are constantly pushing out promo codes to their users so they can enjoy discounted rides.
Also, users tend to browse through the different ride options each app has to offer and go for the cheapest one.
On that note, I feel SixTNC is on the losing end as it has very limited ride options (Standard, 6-Seater, 6-Seater Luxury, and Taxi).
Currently, SixTNC does not offer any carpooling options - which usually is the cheapest ride. But I guess we'll just have to wait and see if it rolls out this option in the near future.
Expansion Plans In The Pipeline
So far, it seems like the app has been enjoying a high demand among drivers.
According to Lee, more than 1,000 drivers - who are already driving with Uber and Grab, and have applied for the Private Hire Car Driver's Vocational License - have indicated their interest towards SixTNC.
The firm is currently working with local taxi companies to allow users to use its app to hail cabs alongside private-hire cars.
Lee also said that the firm is looking to expand to other markets in the region, including Malaysia, in the next three months.