The Future of Private Hire Cars in Singapore: An Analysis

This report examines the competitive landscape of the private hire car market in Singapore, with a particular focus on the entry of Gojek and its impact on the dominant player, Grab. The analysis explores the economic implications of this competition, including the application of the Cournot equilibrium model to determine optimal output and pricing strategies for both companies. The report further investigates cost-effective strategies for both Gojek and Grab, considering factors such as cost reduction, market surveys, and pricing models. It also assesses the potential outcomes if Gojek were to exit the market. The report provides an in-depth understanding of the market dynamics and challenges faced by both companies, offering insights into their strategies for gaining and maintaining market share in Singapore's evolving transportation sector. The report also provides mathematical models for the ideal point of service output that will be required for the two firms if they are to maximize profits.