AirAsia launches ride-hailing services in Malaysia as part of super-app strategy

AirAsia has taken a step forward in realizing its super-app ambitions by unveiling AirAsia Ride, a ride-hailing service that will focus primarily on airport transportation for flight passengers.

The latest service from the low-cost Malaysia-based airline will look to offer customers the lowest prices per kilometer while also taking the smallest commission from drivers, according to AirAsia Super App CEO Amanda Woo. AirAsia Group’s CEO and founder, Tony Fernandes, also said that air taxi services will soon be available on the platform.

AirAsia Ride will price its services at 1 ringgit (US$0.24) per kilometer, excluding toll charges.

Captain Ling Liong Tien (left), AirAsia Group chief safety officer and head of AirAsia Ride, and Lim Chiew Shan, CEO of AirAsia Ride Malaysia / Photo credit: AirAsia

Slated for an initial launch in Malaysia’s Klang Valley, AirAsia Ride provides users a single app to book everything from “from flight to ride,” said Lim Chiew Shan, CEO of AirAsia Ride Malaysia.

See also: The front-runners of Southeast Asia’s super-app race

Users can choose from seven types of vehicles from budget to premium, Shan explained. They will also be able to save a driver’s details in case they want to hire the same person again.

Drivers can also reject bookings with no fear as the system banks on encouragement rather than punishment, Shan added. The new app has a platform fee of 15%, which is lower than the usual 20%.

AirAsia has already been taking on the region’s super apps in the food delivery and grocery delivery businesses with the launch of its own services in these spaces this year. Last week, its logistics arm acquired Malaysian food delivery startup DeliverEat for US$9.8 million.

Fernandes had earlier mentioned the budget airline’s intention to enter the ride-hailing business as the firm developed a super app that could take on the region’s most dominant players, Grab and GoTo (the merged entity of Gojek and Tokopedia). In July, AirAsia acquired Gojek’s Thailand business and launched a super app and food delivery service in the country.

Read: Tony Fernandes responds to critics of his AirAsia super-app gamble

“We’ll be strong in the airports. We’ll be strong in the tourism department,” stressed Fernandes, noting that existing users of its ecosystem were likely to use its new services.

AirAsia was also reportedly looking to raise US$300 million to boost its super-app plans by growing its digital business arm.