Ride-hailing app Tada is making inroads in Asia, as a no-commission model that lets drivers keep more of the money they earn proves popular with passengers as well.
A 50-year-old woman living in Singapore heard from a driver she hailed that other drivers are using Tada because they do better financially off the app. Afterward, the woman switched from another ride-hailing app to Tada.
Tada, based in Singapore, was launched as a subsidiary of MVLLabs, a blockchain mobility firm. The service has expanded to Thailand, Cambodia, and Vietnam.
When drivers use a ride-hailing app to find customers, they generally pay a platform fee, along with a commission proportional to the cost of the trip. Commission fees vary depending on the platform, but are typically 10–20% of the transport charge.
Tada’s biggest advantage is the absence of any commission. Drivers pay only a platform fee of SGD 1.05–1.25 (USD 0.78–0.92) per trip.
For riders, the fares on the Tada app appear to be lower. Based on price comparisons for a weekday ride from downtown Singapore to the Night Safari wildlife park on the outskirts, Grab cost around SGD 32 (USD 23.8) while Tada was less than SGD 30 (USD 22.3).
Drivers are prioritizing customers who use Tada. Sometimes an individual who is unable to hail a ride through another app can book a ride immediately using Tada.
“We launched Tada ride-hailing out of Singapore, and as a latecomer, we cannot compete in the same way against [early players] like Uber, Grab, and Gojek,” said Sean Kim, CEO of Tada Mobility. “Their business model is basically taking high commissions in return for offering a job to the drivers.”
Tada forgoes commissions as a point of differentiation.
“We don’t take a percentage cut from their earnings,” Kim said.
Tada considered, but rejected, using crypto assets as a sales incentive.
“We decided to focus more on organic growth, instead of relying on some fancy terms,” Kim said.
Tada became popular among drivers as a service offering reasonable fees.
“It’s always better for drivers to choose our platform, as it reduces the need for us to spend as much as competitors might need to spend to retain drivers,” Kim said.
In December 2024, Tada expanded into Hong Kong, its first market outside of Southeast Asia. Uber is known for a large footprint in Hong Kong. Though Tada will be taking on one of the biggest names in ride-hailing, Kim is matter-of-fact about the opportunities.
“Whichever market has a dominating player … they tend to charge very high commissions,” Kim said. “We naturally have a better competitive weapon in such markets. In Asia, especially Southeast Asia, Tada is doing well, and that’s why we can also perform well with the same model.”
Major ride-hailing apps have expanded beyond just ride-hailing. Grab and Uber field food delivery services. Gojek merged with e-commerce provider Tokopedia, and the superapp handles finance as well.
Tada distances itself from those areas and focuses on ride-hailing. The group manufactures electric two-wheelers and three-wheelers, but those vehicles are made for the ride-hailing arm.
“Using blockchain, we are now exploring more, like the decentralized finance model, so that we can support drivers who need to rent a car,” Kim said. Such an initiative would focus on developing countries like Cambodia and Vietnam where drivers lack the credit history to finance vehicles through conventional means, he said.
“If we were to consider listing, of course we would aim for markets like the US,” Kim said, citing Nasdaq and the New York Stock Exchange.