AirAsia To Launch Ride-Hailing Service Soon, CEO Tony Fernandes Said

Since the start of the pandemic, AirAsia has ventured into various competitive industries like food delivery, grocery delivery and even virtual idols for streaming business, at a rapid pace to cushion the blow.

Now Tony Fernandes has announced that they will be diving into the running scene, The Edge shared. While he has yet to confirm a launch date for the service, he appears to be confident in this new venture, telling Malay Mail he’s not amazed by giants like Grab.

With the aim of becoming Asean’s super app, it makes sense for AirAsia to enter the carpooling industry. But while they’ve pretty much dominated the budget airline industry here, their other in-app services like the aforementioned two still need some work before consumers are confident enough to use their. future transport service.

First, optimize their other services for consumer confidence

It’s been almost a year since they launched their food delivery service, but after testing it myself I would say there are many areas that need further improvement if their end goal is to surpass the level. popularity of Grab and foodpanda.

First, they need to work on integrating more traders in less central areas to increase their food delivery options. For someone like me who lives in Alam Damai, Cheras, most of their food categories like Halal, Healthy, Dessert, Vegetarian, etc. had less than 10 merchants.

On the other hand, my colleague who lives in PJ was given a greater variety of options. With nearly a year of operations already behind them, it would be nice to see some progress in expanding their reach across Malaysia.

While the lack of motorcyclists is why AirAsia Food’s accessibility is still low, it’s an issue they should tackle before they embark on the race. Consumers would want to be sure that using their app means being able to get service anytime, anywhere, whether it’s for food and grocery deliveries or for calls.

Seeing how AirAsia Food offers restaurateurs a low 10% commission rate, we can expect them to have similar incentives to attract drivers when they launch their transport service.

However, the low commission rate for restaurants came at the cost of cutting out cards to track real-time passenger locations in the app, a handy feature that consumers have come to expect as a standard.

If AirAsia plans to cut costs while providing attractive incentives to its drivers as well, what would be the immediate effect on consumer convenience?

Another way to become a great app

Forgive me for bringing up such a first world issue, but maybe the fact that the app has a much slower load time would be important to others like me.

Every time I click on a tab it takes about 2 seconds to load. It loses that smooth, “well-oiled” feel that other established apps like Grab or foodpanda offer. Another technical thing that bothered me was that sometimes when I clicked on a merchant I would be taken to the app homepage instead of the store page.

Not to mention, I also ran into issues trying to fill in my details to access AirAsia Fresh and AirAsia Food, but that could just be related to its limited accessibility in my area.

In order for AirAsia to become a great app of choice for users, even the smallest inefficiencies or drawbacks of the app and its services would need to be addressed. Consumers may be excited to try AirAsia’s new services at launch, but ensuring they continue to use them will require further improvement from the company.

Despite the limitations and technical difficulties I have encountered with their app, I believe they have the potential to grow their brand into the super app they aspire to. Being already a household name will undoubtedly give them an extra boost in terms of visibility and public interest.

To add, Tony Fernandes pointed out, “I have eight years of Grab doing it to learn. I don’t have to waste all that money, with experimentation, building technology, driver training and market-to-order training they did it all for me.

While diversifying their income, some other companies that are already in the AirAsia pipeline are including drone deliveries and air taxis in the near future.

  • You can read more articles about AirAsia than we have written here.

Featured Image Credit: Tony Fernandes, CEO of AirAsia / freepik

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