Mitigating Disruption From Disruptors

Clear and tightly-enforced regulations are necessary start points for any enterprise, even those which are beneficial to society.

- Christopher Tan

WITH American ride-hailing giant Uber and Chinese bike-share operator oBike exiting Singapore within months of each other, consumers are doing one of two things.

Those who are directly affected by the exodus are clamouring for recourse. These people are either facing higher commuting cost (a result of diminished competition) or the prospect of never getting their deposits back.

From the sidelines, others are wondering if having these “disruptors” in our midst is worth the trouble in the first place, or why the Government had allowed them to come into Singapore.

The reactions are understandable, even if they are not entirely justifiable.

First of all, folks who think companies which offer goods and services at unrealistically low prices will somehow be commercially viable are naive, at best.

In the days when Uber was around, it was fighting tooth and nail with arch-rival Grab for both drivers and customers. Armed with tonnes of funds from investors who are suspiciously optimistic, they competed fiercely.

Uber, among other things, embarked on an aggressive fleet expansion, while Grab offered ride promotions like they were going out of fashion.

Consumers, on the receiving end, were spoilt for choice. Many often paid next to nothing for their rides. Did they think the gravy train would never stop?