The Sharing Economy Lays Its Foundation in Asia

Apps are big sellers in APAC, reflecting the region's ability to embrace the sharing economy, with car-pooling the latest trend.

In Asia Pacific apps still lead the charts as being the most purchased item on a mobile device according to Warc. The countries leading the way are Thailand (38 percent), Vietnam (31 percent), Malaysia (30 percent) and Taiwan (30 percent).

The high usage of apps is in direct correlation to the high penetration and frequent usage of smartphones across the region.

This is undeniable as you travel throughout the region and see a smartphone in the hands of almost anything that walks. But one interesting and pervasive trend we are seeing in the app world in Asia is the growing prevalence of “commuter” apps. Partly influenced by the launch and spread of Uber in this region and partly as a result of markets simply becoming more populated with cars.

Put in perspective, in 2008 there were around 7 million cars sold in China and fast-forward to 2014 that market saw almost 20 million cars sold, with 2015 slated to be even more.  

Competition for space on the road is getting fierce and people are now looking for alternative ways to commute.

Lets take a look at some of the hotter apps that are getting traction these days, all aiming to solve the commuter dilemma.

GrabTaxi: Founded in 2012, GrabTaxi is a location-based on-demand app for people looking to book taxis, limos or motorbikes. It currently has over 620,000 monthly active users, over 3.8 million mobile app users and a fleet of more than 75,000 taxi drivers who actively use the app across Southeast Asia.

A true success in Asia that has seen meteoric growth, GrabTaxi, with its home base of Malaysia has recently been estimated with a billion-dollar valuation.

GrabTaxi’s keys to success can be pinned to three areas: strong word of mouth, collaborative partnerships with fast moving consumer brands and a focus on unique and memorable PR tactics.

Tripda: In May, the Philippines finally legalized ride sharing services, opening the gates for Uber and other similar technology-based services.

Rocket Internet, an Internet company based in Berlin, took to the street to launch Tripda off the back of the new lax regulation.

The app connects car owners who have spare seats with passengers traveling in the same direction. Where traffic is a nightmare and population becoming increasingly worse, Tripda looks to provide a more affordable commute for people while helping to reduce traffic and overall pollution in Manila.

The long-term goal for Tripda is to make carpooling a mainstream transportation alternative.

Shun Feng Che: Shifting gears to China comes Shun Feng Che a recently launched carpooling app that focuses on urban commuters in Beijing and looking to roll out to 26 additional cities by the end of June.

With Shun Feng Che, car owners simply setup their default routes, while passengers input where they want to get picked up and dropped off. The app then automatically finds the matches.

The app has recruited over 1 million car owners in less than two months. The service will charge a small base fee plus 1 yuan per kilometer, which would work out to almost half the price of a Beijing taxi.

Like everything in China, the app is expected to grow big, reaching over 100,000 orders within a month and topping the million mark by the end of 2015.

The “sharing economy” has arrived late to Asia, partly due to culture acceptances. But as these services start to grow in popularity and acceptance, we will start to see a lot more of these types of services popping up, particularly off the back of such a strong mobile infrastructure that Asia has built over time.

For brands and digital marketers wanting to connect more with audiences in Asia, utilizing mobile apps as one of your key brand assets has clearly been a proven channel that works. Doing this while integrating an element of sharing, which is becoming a more prominent trend in the region, could be a strong formula for success in Asia.

*Image via Shutterstock

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