SG mobility startup offers zero commission fees to challenge Grab

Geolah’s leadership team / Photo credit: Geolah

To survive and eventually turn profitable, platforms charge commission fees.

Singapore-based Geolah – a mobility startup – wants to remove commission fees altogether.

“By deploying this zero-commission strategy, we will see significant growth and expect to attract a large pool of part- and full-time drivers, which create more business opportunities,” Deniel Singh, the firm’s co-founder and COO, tells Tech in Asia. 

Singh and his team at Geolah are gearing up to offer services very much similar to Grab: ride-hailing, food delivery, and parcel delivery. And yes, Geolah also aspires to become a super app.

Instead of charging drivers commission fees, Singh said his startup will earn revenue through rebates from digital payments, insurance, and automotive firms. He estimates that these rebates round out to about S$0.49 to S$0.65 (US$0.37 to US$0.49) per trip for fares below S$25.

Revenue will also come from ads, with the firm saying that it has onboarded a number of brands.

Geolah promises that ride fares will be lower than other competitors during peak hours. The startup has recruited around 540 drivers, targeting to have 1,200 drivers within this year and 30,000 by 2024.

The company says it has applied for a license from Singapore’s Land Transport Authority, which is required for ride-hailing operators with 800 vehicles or above.

The firm’s GeoRide app, which is expected to launch on February 14, will offer hired cars, fixed-meter taxi services, and private chauffeurs.

Why bother competing with the giant?

Singh says his team found that there’s a low supply of full-time drivers, decreasing demand due to longer queues and higher fares. Geolah wants to make ride fares more affordable for the public and enable drivers to earn “maximum income.”

Singh founded Geolah alongside CEO George Lim Ting. The company is currently bootstrapped with enough runway for the next five years. “We have invested S$1.5 million (US$1.1 million) and can access more if required,” said Singh.

Aside from GeoRide, GeoBite (food delivery), and GeoMart (e-groceries), the startup will also introduce GeoTrans, which will offer commercial electric vehicles, non-emergency ambulances, and trucks as transportation options. Unlike GeoRide, GeoTrans will charge at least 10% in commission fees.

See also: Grab is leveling the playing field for MSMEs with its merchant super app