Uber: a no-Goa at Asia’s tourist hotspots?

While metropolises like Jakarta, New Delhi and Singapore are embracing ride-sharing companies like Uber and Grab, tourist destinations like Phuket, Bali and Goa have been less welcoming – and it’s the customers who are losing out

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In some Thai destinations, tourists have limited transport options beyond overpriced tuk-tuks and rental cars. Photo: AFP

Published: 8:04am, 18 Dec 2017Updated: 8:04am, 18 Dec 2017

German tourist Sebastian Powell has an enduring obsession with the Thai holiday island of Phuket. Its beautiful, picturesque beaches have drawn him to visit at least eight times in the past six years and the appeal never seems to dim. Each time he leaves with cherished memories and a feeling that he has seen a different side to paradise. Distinct as each trip has been, however, the experiences seem to offer one constant: being ripped off by taxi drivers. Take Powell’s most recent visit, in October, when he took a taxi from the airport to his hotel on Patong Beach. Not only was the vehicle “in a dismal state” and “reeking of gasoline”, but he was charged 650 baht (HK$155) – more than twice as much as a Bangkok taxi would charge for the same distance. “The problem with the taxi mafia in Phuket is simply the price and that most ‘taxis’ are actually private cars that don’t come with a meter, so drivers can make up prices as they go,” said Powell, an editor at travel blog LoyaltyLobby in Japan. “That’s annoying and mostly a rip off.”

In Phuket, tourists have limited transport options beyond overpriced tuk-tuks and rental cars. Car- and taxi-hailing services – as well as half-day vehicle rentals – are offered by Grab, a Singapore based firm, but customers complain availability is limited, particularly in popular areas such as Kata and Karon beaches. Uber had introduced a car rental service for tourists called UberTour in January 2015, but a crackdown by authorities has since forced it to retreat from the island.

A GrabBike driver in Jakarta, Indonesia. Photo: AP

“We pressed pause in April 2015. The timing wasn’t right for ride sharing on the island,” an Uber spokesman said. “We are always ready to return.”

Powell’s experience illustrates how ride-hailing companies are still struggling to make an inroad into Asian holiday spots such as Phuket, Bali, and Goa, where taxi unions, backed by local authorities, continue to oppose them. That’s in stark contrast to regional metropolises like Jakarta, New Delhi, Hong Kong and Singapore, where ride-hailing companies have enjoyed high levels of growth as regulators and traditional transport providers learn to work with the new technology.

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In Singapore, Uber recently announced a nearly US$500 million joint venture with ComfortDelGro, the city state’s largest taxi operator, while in Malaysia, the central bank has cleared Grab to operate e-money services from the first half of 2018. In Indonesia, ride-hailing giant Go-Jek is planning to expand to four neighbouring countries, and in India, Ola this month launched a dockless bike-sharing service on some university campuses. Even in Hong Kong, which has long been resistant to embrace ride-sharing companies, the taxi industry said last week it would consider joining forces with Uber.