The ‘big man’ of technology cars simultaneously reported big losses

While the world is testing ride-hailing services with Uber Technologies, Lyft, Grab, Didi Global and Ola, Japan is cautious, only recently allowing Uber to operate through taxi companies. These ride-hailing apps have big holes showing that Japan’s decision might be the right one

Uber and Lyft of the US lost $ 24.5 billion and $ 8 billion respectively at the end of the third quarter of 2021, while Singapore’s Grab lost $ 13 billion and China’s Didi lost $ 21 billion.

India’s Ola lost $6.9 billion in the three years from March 2018 to March 2021. The most reliable data in the US shows that ride-hailing apps are becoming too much.

However, taxi companies are profitable, although the best numbers are for listed companies. Japan’s Hokko Daiwa Taxi posted profits of 506 million yen ($1.2 million) and 360 million yen respectively in fiscal 2018 and 2019.

In Singapore, the country’s largest taxi company, ComfortDelGro, made a profit of $89 million in the first, second and third quarters of last year, while the leading ride-hailing app here, Grab, lost $1.4 billion.

The business results of ride-hailing apps lagging traditional taxi firms reflect the fundamental differences in performance between the two. That is, traditional taxi companies are easier to pick up passengers than ride-hailing apps.

Passengers can hail a taxi on the street or line up at a taxi stand, while tech drivers rely on passengers booking a ride through an app.

Over the past 10 years, startups have set up similar ride-hailing apps around the world. Some businesses open two ride-hailing apps in the same city. The surplus continued and the losses continued to grow.