BlueSG, the only car-sharing platform offering point-to-point services in Singapore, is suspending its operations until a relaunch in 2026.
With BlueSG pausing its services, several major car-sharing firms told CNA they would not be filling the point-to-point void for now, although one did not rule out moving into that space in future.
Car-sharing operators GetGo and Tribecar said a point-to-point service would be operationally more challenging and that they are focusing on enhancing their current offerings, while Drive Lah said it is “possible” they may consider such a service in future.
BlueSG is suspending its operations from 11.59pm on Friday (Aug 8), in what it calls a “strategic pause” as it prepares for a relaunch next year.
The company is the only car-sharing platform that offers point-to-point services in Singapore. This allows users to pick up a car at one location and return it at another.
Experts said its move to suspend operations was likely influenced by losses caused by an ageing fleet.
OPERATIONALLY CHALLENGING
GetGo’s chief executive and co-founder Toh Ting Feng said a point-to-point car-sharing model would present “significant operational challenges”.
“It requires a substantial investment in infrastructure, such as dedicated parking and charging stations across the island, and a complex logistical network to ensure vehicles are properly distributed and maintained,” he told CNA.
“Our current model, which focuses on a ‘point A to A’ service, is a strategic choice that allows us to provide a reliable and consistent experience for our users without these complexities.”
GetGo said that since its launch in 2021, it has seen “sustainable growth” – from over 400 vehicles and 10,000 users, to around 3,000 cars and half a million users in three years.
Similarly, Tribecar’s co-founder Adrian Lee said it would be operationally more challenging and labour-intensive to offer point-to-point services, as cars could be parked in many different locations across Singapore.
“The primary challenge is that the current regulatory and infrastructural framework does not support the entry of new players into the point-to-point space,” he said.
“Without a change in policy, it is not possible to launch such a service.”
When asked if Tribecar may have plans to offer point-to-point services, he said the company’s primary focus is to ensure users in heartlands have sufficient vehicles that are readily available.
Tribecar is only allowed to park registered cars that are specifically tagged to individual carparks that allow season parking.
The company has a fleet of 1,400 vehicles, an increase from an initial 350 vehicles five years ago. Mr Lee said Tribecar has seen a 35 per cent year-on-year increase in users over the past five years and described the car-sharing sector as a “competitive market”.
Drive Lah’s chief executive and co-founder Dirk-Jan Ter Horst said expanding into the point-to-point space was not on top of their list at the moment, but he did not rule out the possibility.
Drive Lah’s peer-to-peer model means car owners and commercial providers can rent out their vehicles on the platform, and users can lease these cars. Describing the company as an “Airbnb for cars”, Mr Ter Horst said the platform now has 275,000 users and about 2,000 cars.
Explaining why moving into the point-to-point space was not currently a top priority, Mr Ter Horst said its model means owners want their cars to be returned to their homes.
“We see the type of use cases where people take it a little bit longer, not just for half an hour but from point to point, but they return it.
“And actually, from a cost point of view, it still makes sense – because the cost for one day or renting for six hours may still be worth it instead of doing two point-to-point trips,” he added.
When asked if Drive Lah may in the future own a fleet to provide point-to-point services, he said this was “certainly possible”.
Transport analyst Dr Terence Fan said he does not think car-sharing operators will move into the point-to-point service space immediately.
The assistant professor at the Singapore Management University (SMU) noted barriers to entry, such as securing parking lots in sought-after locations and taking the time to grow to a “reasonable presence”.
“The competition has grown significantly over the past few years. Now almost every medium-to-large housing estate has one or more dedicated car parks used by car-sharing operators,” Asst Prof Fan said.
“New entrants need to offer something more to be competitive.”
ACCREDITATION
There were 97 complaints about car-sharing services in the first half of this year, said the Consumers Association of Singapore (CASE) on Tuesday.
These complaints included pre-existing defects, poor maintenance, billing issues, high insurance excess and service reliability.
The watchdog said it was working with operators to develop a CaseTrust accreditation scheme for the sector. This is aimed at raising standards and giving customers peace of mind, said CASE president Melvin Yong.
“Consumer education will also play an important role as more people use car-sharing services. CASE will work with the industry to educate consumers on how to safeguard their rights and prevent disputes when using car-sharing services,” Mr Yong told CNA on Thursday.
Car-sharing services are private commercial arrangements and are not regulated by the Land Transport Authority.
All three car-sharing operators told CNA they supported the accreditation scheme.
Tribecar’s Mr Lee said it would “formalise the role of car-sharing as an integral part of Singapore’s sustainable transport ecosystem and provide a clear set of standards for the industry”.
“We have advocated for tough, comprehensive standards that will not only challenge us but also our peers and future entrants,” he added.
“This is because we firmly believe that elevating the entire industry is the only way forward to ensure sustained growth and public trust.”