Jugnoo makes ride-sharing democratic in Singapore

Recent advances in electronics and internet technologies have had major impacts on the ridesharing market. But for all of its extraordinary growth, ridesharing is still far from ubiquitous. To boost miles travelled, the ridesharing industry will need new solutions. And it will include smarter design and innovative technologies.

While more and more of the customers are being served by the industry, the growth ceiling for this current ridesharing model —is relatively fixed.
The restrictions imposed by ridesharing-industry watchers have made the Uber-Grab deal face uphill battles. They wanting them to retain their pre-transaction pricing and product options for riders and drivers.

Thus to mark a milestone moment in its growth, Jugnoo analyzed the issues faced in the ridesharing market. And forayed in the Singapore market with a reverse bidding ridesharing system.

This will be the opposite of how to Grab and Uber work. It will be rolling out a reverse-bidding pricing system from May 1. This will be beneficial to riders and drivers in the ridesharing system.

How will it work?

Jugnoo will enable freelance drivers with commercial driving license to bid for commuter requests in ridesharing software. When a rider makes a booking, drivers will be able to bid for the ride.

Alternatively, they can also offer an amount of their choosing in the ridesharing app. Riders will then have the ability to choose between bids offered by drivers. It depends on the driver’s rating, bid price and how long they will have to wait for the ride.

For the first six months, Jugnoo is free to start with. But after six months, Jugnoo will operate on a commission-based revenue model. It will charge a 10 per cent commission on the ticket size from the drivers, and a convenience charge from its customers.

Nowadays, reverse pricing has become an increasing concern for many ridesharing businesses. Reverse bidding, a proven business model in advanced economies, has geared up and the number of businesses. It has sprouted to tap into opportunities in a range of sectors.

It gives potential customers an active role. This is a mechanism through which, interested parties bid a price down from an amount set by the buyers. And then those with the best price are selected through electronic biddings towards the lowest. This guarantees fair and transparent competition.

With the reverse bidding model, Jugnoo aims to optimally leverage the already available large pool of taxi owners. Its expansion in the Singapore ridesharing market will scale up the growth of many stakeholders.