Latest news with #car-sharing
CBC
6 days ago
- Automotive
- CBC
CBC Calgary Headline News August 12: Cannabis hiring changes, invasive weeds & Banff car-sharing
CBC Calgary Headline News August 12: Cannabis hiring changes, invasive weeds & Banff car-sharing 58 minutes ago Duration 0:59
CNA
07-08-2025
- Automotive
- CNA
Why are major car-sharing firms not stepping into the point-to-point void amid BlueSG's pause?
SINGAPORE: 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." Similarly, Mr Toh believes accreditation and guidelines would provide consumers with greater transparency and confidence. GetGo is also working with CASE to develop the accreditation framework. 'GetGo fully supports any initiative that aims to raise industry standards and protect consumers,' he said. 'An accreditation scheme would formalise the high standards we already adhere to,' Mr Toh added. "It would provide consumers with greater confidence and transparency. We view this as a positive development for the entire carsharing industry." Mr Ter Horst welcomed the accreditation, but hoped there would not be too much administrative work involved for the private car owners on Drive Lah's platform. "What you don't want to do is to scare people off ... you want to reduce the barrier as much as you can," he added. Asst Prof Fan also supported the "proactive move" by CASE, saying it could provide incentives for operators to behave in a "transparent and responsible manner" if done properly. "I hope the proposed accreditation won't simply (be) biased towards incumbents, and can shield operators from unjustified comments (or) complaints," he added. MAINTENANCE Some users have complained about the condition of cars they used on car-sharing platforms. Both Tribecar and GetGo said their vehicles undergo regular maintenance at intervals recommended by the manufacturer, besides adhering to LTA's inspection requirements. GetGo's Mr Toh said the company also conducts routine checks and has a system in place for users to provide real-time feedback. Tribecar's Mr Lee said its cars are taken out of service to be maintained typically at 10,000km to 15,000km intervals as recommended by the workshops. Almost all vehicles in the company's fleet also undergo annual inspections, he added. Besides reports by users on vehicle issues, Tribecar also proactively contacts 'super users' in specific areas for their input on the vehicle's condition, Mr Lee said. Mr Ter Horst said Drive Lah does not face frequent reports of dirty vehicles or poorly maintained cars on its platform. Although the company does not fully control how people maintain their cars, Drive Lah may block owners from offering their car on the platform if an issue has not been fixed, he added. Mainly, owners who rent out their cars on Drive Lah keep them clean for their own use and personally maintain them, he explained. "And also, if I'm renting your car, I feel that I need to be a little bit more careful when I use the car and that means issues like dirty cars – we hardly see it," he added.
CNA
07-08-2025
- Automotive
- CNA
Analysis: How mounting losses and an ageing fleet could have sparked BlueSG's 'strategic pause'
SINGAPORE: BlueSG's move to suspend operations were likely influenced by losses caused by an ageing fleet, but its brand could take a hit from such a move even as the Singaporean car-sharing service plans a return in 2026, experts say. The firm on Monday (Aug 4) announced a sudden "strategic pause" of their electric vehicle (EV) point-to-point car-sharing operations starting from Friday, as it works to upgrade its infrastructure. BlueSG will also be laying off a portion of its workforce, though it did not state how many will be affected. Its new service will involve a new platform, a refreshed fleet with a new range of vehicles, an expanded network of pickup and drop-off points, as well as "greater reliability and a smoother user experience", the company said. BlueSG is the only car-sharing platform that offers point-to-point services in Singapore. 'They could have just continued operations and added the right vehicle fleet mix and changed policies and so on,' said Associate Professor Walter Theseira at the Singapore University of Social Sciences. 'But my suspicion is that they must have concluded that the cost of continuing to keep the fleet in operation as well as operating costs just vastly outweighed any benefit in (operating for) the next couple of months,' he added. 'It was better to draw a line underneath this and then change everything.' Agreeing, Associate Professor Jawn Lim from the Singapore Institute of Technology likened BlueSG continuing operations while revamping infrastructure to 'moving into a half-renovated home'. 'The issues from an incomplete and dusty interior could be more disruptive than waiting until the renovation is fully completed and cleaned,' he said. 'There may be more costs incurred to maintain the current BlueSG service than taking the 'strategic pause'.' BlueSG's annual financial statement from the Accounting and Corporate Regulatory Authority (ACRA) website showed a net loss of S$31.1 million (US$24.2 million) between January 2023 and March 2024. This was after a net loss of S$11.4 million between January and December 2022. Auditor EY noted that the company had changed its financial year end from December 2023 to March 2024 - and that the figures were "not entirely comparable" as they now covered a period of 15 months instead of the previous 12-month stretch. The accounts for the financial year ending March 2025 are not available yet. Founded in 2017, BlueSG was sold in 2021 to Goldbell, a local vehicle leasing company. Goldbell announced then that it would be investing S$70 million in BlueSG, and even expressed hopes for overseas expansion. According to its financial statement, Goldbell recorded a profit of S$24.2 million between April 2021 and March 2022; and S$6.2 million between April 2022 and March 2023. But between April 2023 and March 2024, it recorded a loss of S$3.4 million. Asked by CNA about the move to suspend operations and the role played by mounting losses, BlueSG CEO Keith Kee said the decision 'stems from a forward-looking review of how best to meet the evolving demands of shared mobility in Singapore'. While pausing operations could help save costs, intangibles such as consumer trust in the BlueSG brand could be hurt, said Professor Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore (NUS). 'Whether they are upgrading or not, a total stoppage will result in lost revenue, lost users and given the layoffs ... it will have an impact on the credibility of the company,' he said. Mr Kee said 'serious consideration' was given to keeping the BlueSG service running while rebuilding in parallel. 'But (we) ultimately recognised that this would divide our efforts and risk further disruptions for users,' he added. 'Taking a short, planned pause now gives us the focus needed to return faster - and stronger.' "DOUBLE WHAMMY" BlueSG founder Franck Vitte, who served as the firm's managing director until 2021, told CNA he believes the firm's transition to a new IT system in 2023 proved to be more challenging than anticipated. The new system had led to disruptions and left users frustrated over issues such as difficulty ending rentals. It is possible that back then, BlueSG needed to 'completely redesign its system architecture to enhance customer service and achieve financial sustainability', said Mr Vitte, who is now the MD of TotalEnergies, BlueSG's charging network. 'At the same time, its vehicle fleet was ageing, and maintaining the Bluecars had become increasingly difficult, particularly since production of the model ceased several years ago." Mr Kee, the CEO, said: 'When we first took over the service, we inherited a legacy system. A major milestone for us was the successful migration to a more robust, insight-driven backend - which allowed us to stabilise operations and deliver steady growth in subscriptions and rentals. 'That migration also revealed the limitations of the existing infrastructure - especially as new technologies emerged and demands accelerated,' he added. 'It became increasingly clear that a full platform upgrade was needed to meet future demands with greater agility, efficiency and scalability.' Associate Professor Raymond Ong from NUS also pointed to fast-developing advancements in the EV landscape, and how that combined with an ageing fleet for a 'double whammy' for BlueSG. Charging points have since become more widespread islandwide, yet BlueSG cars can only be charged at specific stations. This puts a lot of cost pressure on the firm, said Assoc Prof Ong. 'It could be better for BlueSG to work with a power company to come up with a better funding mechanism for their charging infrastructure,' he said. 'All this has to be looked into as the EV market is changing so fast.' He also noted that BlueSG's ageing cars now have shorter range compared to newer EVs. The company did attempt to refresh its fleet in 2022, by adding 500 Opel Corsa-e cars. Assoc Prof Theseira said this could have been a misstep. 'For whatever reason, they decided to go with a European model instead of going for, for example, a Chinese model, which everybody knows is not only enjoying a lot of popular support in Singapore, but is also likely to be cheaper,' he said. IS THERE DEMAND? The abrupt cut-off of BlueSG operations will be felt by its thousands of users. On one community Telegram Channel, news of the pause led to several users leaving notes of appreciation, citing how they had come to rely on the service. Some hoped BlueSG would come back stronger next year. Prof Loh from NUS believes BlueSG users will likely turn to other car-sharing firms or fall back on ride-hailing - possibly even causing temporary price increases in those services. 'If demand is more than supply, there could be potential for price increases (and) more surge pricing (during peak hours),' he said. Assoc Prof Theseira had a different view. 'If (BlueSG) had embarked on this move, they must have seen from the operating numbers that basically, demand was not there, or not there to sustain operations,' he said. 'So what is the effect, then, of removing what is now a more marginal player with depressed demand? Not much effect, right?' 01:11 Min IS THE BLUESG MODEL TENABLE? As Singapore's only point-to-point car-sharing service, BlueSG's pause has invited questions of whether the model is sustainable at all. Assoc Prof Theseira called the point-to-point modality the 'holy grail' of car-sharing - because it opens up to a much larger market, compared to one where rented cars have to be returned to the same place. 'But the problem here is that point-to-point also requires a sufficient density in your network, as well as systems - both operating and pricing-wise - to actually encourage proper circulation of cars,' he said. He likened BlueSG's issues to those faced by bicycle-sharing firms - where the vehicles do not always spread themselves across the island evenly, due to demand patterns. For instance, in Singapore people typically work, play and live in distinct areas. This means that BlueSG cars in use are typically moving from one place to another, rather than circulating. 'Who comes (to a Housing Board estate) to work or play? Everyone in those estates goes to work and play in the town area,' said Assoc Prof Theseira. This differs from cities like Tokyo, where its suburbs are a mix of residences, workplaces and leisure spots. 'Somebody may live in part A of Tokyo and go and play or work in part B; and somebody who lives in part B might go and work or play in part A,' said the transport economist. In general, the car-sharing market is difficult to sustain, as also seen in other parts of the world, he pointed out. Earlier this year, US car-sharing firm Getaround abruptly shut down operations, citing financial difficulties. In 2018, French point-to-point EV car-sharing firm Autolib also ceased operations after chalking up major losses. Despite the current headwinds, former BlueSG executive Vitte hopes the firm he founded can bounce back. 'I believe that car-sharing has a natural place, especially in a city like Singapore, where it perfectly complements the existing transport options,' he said. 'I remain hopeful and confident that a new car-sharing service will emerge in the coming months, one that applies the lessons of the past to deliver a high-quality experience for Singaporean commuters.'
