Cryptocurrency is involved in the ride-hailing subsidy war, and this Web3 ride-hailing app became famous in Singapore with one battle

Author: Kaori, BlockBeats

During this Token2049 event, Grab seems to no longer be the preferred ride-hailing choice for attendees in the crypto space, as the largest ride-hailing platform in Southeast Asia has been overshadowed by an app called TADA.

The invitation link for TADA has been circulating in various crypto group chats, and in Singapore, where the starting fare is around 50 SGD, the cost of choosing TADA is sometimes only a fraction of Grab's fare. According to BlockBeats' tests, a regular ride from Changi Airport to Marina Bay using Grab costs about 112 RMB, approximately 20.5 SGD, while using TADA costs 84 RMB, about 15.4 SGD, which is roughly 25% cheaper.

Above: New users have a free ride credit of 60 SGD; Below: The second ride and subsequent rides enjoy a 50% discount.

Million Dollar Subsidy to Drive Traffic to TG Mini App

According to TADA's official policy, during the Token2049 conference, the first 4,000 users who use the TADA Telegram Mini App for rides will receive a 60 SGD first-ride free credit, and thereafter, all Mini App users will enjoy a 50% ride subsidy. Preliminary calculations by BlockBeats estimate that TADA's subsidy cost over the 5-day period is at least 600,000 SGD, equivalent to about 3 million RMB.

For a small ride-hailing platform, it is rare to see a case of investing millions in cash subsidies in a short period. However, interestingly, the large subsidies have not driven traffic to TADA's mobile app. To receive ride subsidies, users must use TADA's recently launched Telegram Mini App and pay using $TON or $USDT through the TON wallet.

Using TADA's Telegram Mini App is no different from using a WeChat Mini Program for rides; users can choose the vehicle type and payment method. It is worth noting that users cannot select credit card payments, and the payment type displayed to drivers on the app is "bank card payment."

Left: TADA's Telegram Mini App ride interface; Right: TADA driver's mobile interface.

According to TADA's official website, the platform does not charge drivers a commission percentage; all fares go to the drivers except for financial payment fees like bank card charges. However, some drivers have told BlockBeats that TADA does charge a certain percentage of commission, but it is the lowest among all ride-hailing platforms in Singapore.

BlockBeats learned that TADA's fee structure for drivers is as follows: no platform fee for fares below 7 SGD, a platform fee of 0.6 SGD for fares between 7 and 18 SGD, and a platform fee of 0.8 SGD for fares exceeding 18 SGD. This means that drivers pay a maximum of only 8.6% of their earnings per trip, allowing them to retain a larger percentage of their income on long trips, compared to mainstream ride-hailing platforms like Grab, which take around 20%.

The "zero commission" model has made TADA well-recognized among Singapore's ride-hailing drivers. According to Channel News Asia, many drivers from Grab or Gojek platforms have reported a decline in their income due to low order prices, while despite a decrease in order volume for TADA drivers, their income has not been significantly affected. During Token2049, the original price for a ride from the city center to the airport using the TADA Mini App was about 30 SGD, which is 60% more expensive than Grab's average fare of 20 SGD, and users need to use the 50% discount to enjoy a better price.

Left: Grab ride fare; Right: TADA ride fare.

High platform income and low ride costs have also raised questions about TADA's subsidy sources and sustainability. Many users understand that this situation cannot last forever unless TADA finds a way to profit from other avenues. As of the time of writing, Singapore users can no longer enjoy the 50% ride subsidy through TON network payments.

Annual Revenue of 21 Million USD, Has Web3 Consumer Application Been Successful?

Interestingly, many people mistakenly think of TADA as a traditional ride-hailing platform when they first use it, only to realize at the Token2049 main venue that it is actually a blockchain company.

TADA's parent company, Mass Vehicle Ledger (MVL), was established in 2018, and its founder, Kay Kyeongsik Woo, previously founded the South Korean mobility app easi6. Unlike traditional ride-hailing platforms, MVL has positioned itself as a blockchain company from the start, exploring ride-hailing business models without platform commissions and token economic incentives. As TADA's business grew, MVL gradually expanded to a company with over 300 employees, involved in mobility services, automotive manufacturing, energy, and data.

TADA's booth at Token2049; Image source from X.

The competition in Singapore's ride-hailing market is exceptionally fierce. According to data from the Land Transport Authority (LTA) of Singapore, the number of taxis has halved since peaking at 28,736 in 2014, dropping to a record low of 13,330 in May this year. Meanwhile, the number of private hire vehicles (including self-drive rentals and ride-hailing) has surged from 18,847 to 84,413, an increase of 347%.

Currently, the five ride-hailing platforms licensed by the LTA are Grab, GoJek (GoTo), Zig (CDG), TADA, and Ryde. In the first quarter of 2022, Grab held a market share of 50%, while TADA had only about 10%.

Market share of Singapore's ride-hailing market in Q1 2022.

However, TADA's market position has gradually found an advantage in the competition. In 2023, according to documents submitted to the Accounting and Corporate Regulatory Authority of Singapore, TADA's parent company, Mass Vehicle Ledger (MVL), saw its revenue increase from 6.3 million SGD in 2021 to 27.5 million SGD in 2022, while the company's losses decreased from 9.7 million SGD in 2021 to 5.4 million SGD in 2022, a reduction of nearly 45%. More than half of the revenue comes from mobility and delivery services, while crypto-related business accounts for 37% of total revenue. In the first quarter of 2024, with its entry into the Thai market, TADA's CEO Sean Kim announced that TADA has become the second-largest ride-hailing platform in Singapore by ride frequency. Additionally, TADA's expansion plans include markets in Hong Kong and South Korea.

In exploring and promoting the application scenarios of cryptocurrencies, MVL can be considered one of the industry pioneers. However, in the development of "Web3 consumer applications," TADA's business has been far from smooth sailing.

The successful attempt of the Telegram Mini App is a new project that TADA launched in recent months, with a clear target audience aimed at participants of various Web3 events in Southeast Asia. Prior to this, TADA had attempted various user acquisition activities such as "Ride TADA and Earn Bitcoin" and "Invite Friends to Join TADA and Earn Bitcoin," but the team found it extremely difficult and costly to convince a user who has never interacted with cryptocurrency to buy crypto just for ride-hailing.

Before launching the Telegram Mini App, MVL viewed providing Web3 services to ride-hailing drivers as its main business, including offering multi-chain wallets and DeFi products to drivers, providing better route options through data analysis with DePIN data maps, and offering reasonably priced vehicles through RWA vehicle projects. However, it struggled to make a significant impact in the market.

Therefore, targeting Web3 users to promote on-chain payment adoption became the core appeal of MVL's team during the TOKEN2049 conference with the launch of the Telegram Mini App. As the saying goes, demand leads to application generation; on one hand, the demand for transportation increased significantly during the conference, and on the other hand, the pricing of platforms like Grab was higher than TADA under the subsidy policy, motivating users to seek cost-effective options. However, as the subsidy activities ended, the ride prices exceeding those of Grab…