334

Ride-hailing, e-commerce lift region's Internet economy

Ride-hailing and e-commerce have galvanised South-east Asia's Internet economy, which will reach US$50 billion (S$68 billion) this year and potentially exceed US$200 billion by 2025.

Ride-hailing, e-commerce lift region's Internet economy

Ride-hailing and e-commerce have galvanised South-east Asia's Internet economy, which will reach US$50 billion (S$68 billion) this year and potentially exceed US$200 billion by 2025.

A report by Google and Temasek also found that all four sectors of this economy have experienced "solid growth" this year.

The stars were e-commerce and ride-hailing, with a compound annual growth rate of over 40 per cent from 2015.

Online travel has shot up 18 per cent, while online media expanded with a compound annual growth rate of 36 per cent.

Mr Rajan Anandan, Google's vice-president and managing director (South-east Asia and India), said: "It suggests that growth is likely to continue in South-east Asia."

E-commerce sales will hit US$10.9 billion in gross merchandise value this year - double the US$5.5 billion in 2015, and growing at 41 per cent a year.

South-east Asian mobile Internet users are among the most engaged globally - spending on average 140 minutes a month on regional e-commerce platforms, versus just 80 minutes on the top platform in the United States.

The report did not name these platforms, but cited Lazada, Shopee and Tokopedia as leading players in South-east Asia.

Ride-hailing services will reach US$5.1 billion in gross merchandise value this year, more than double the US$2.5 billion in 2015.

Over six million rides per day were booked on the region's top apps - Go-Jek, Grab and Uber - in this year's third quarter alone, up more than fourfold since 2015.

The report said: "The acceleration of ride-hailing services... reflects steep pent-up consumer demand, attractiveness for drivers as a viable job opportunity, and product innovation leading to improved user experience."

It noted that ride-hailing players are fast expanding to food delivery, courier services and digital payments.

South-east Asia's Internet economy will account for 2 per cent of the region's gross domestic product this year and is projected to reach 6 per cent by 2025, said the report. This puts it "on a solid trajectory to exceed US$200 billion by 2025", it added.

There are seven Internet unicorns - firms valued at over US$1 billion - in South-east Asia, with four of them based in Singapore: Grab, Lazada, gaming firm Razer and Internet firm Sea.

The other three are based in Indonesia: Go-Jek, travel firm Traveloka and e-commerce firm Tokopedia.

 

To see more transportation related jobs, click here!

Read: Privacy Policy , Terms & Conditions

Back to Career Resources »

Related Articles

    Singapore factory output rises 5.3% in November despite drag from pharma

Singapore factory output rises 5.3% in November despite drag from pharma

SINGAPORE - Manufacturers have real reason to be jolly this season as the strengthening global economy continues to buoy demand for Singapore's exports.

    More than 1,000 firms to take part in Singapore Airshow 2018

More than 1,000 firms to take part in Singapore Airshow 2018

OVER 1,000 companies from some 50 countries are set to participate in the sixth edition of the Singapore Airshow, which returns from Feb 6-11, 2018.

    Henkel opens global supply chain hub in S'pore

Henkel opens global supply chain hub in S'pore

German adhesive technologies and consumer goods giant Henkel opened its global supply chain hub in Singapore yesterday as part of its efforts to merge the firm's supply chains around the world.

    Tower Transit bus drivers going places in new roles

Tower Transit bus drivers going places in new roles

Becoming frustrated with his job after eight years as a freelance IT support consultant, Mr Lee Shao Xiang decided it was time for a change.

    Supply chain and logistics sector look to train more young professionals

Supply chain and logistics sector look to train more young professionals

Supply Chain Asia, National Trades Union Congress and the Singapore Workforce Development Agency work together on bringing in advanced supply chain technologies to reduce manpower needs in the currently highly labour-intensive industry.

    SMRT offers up to $3,000 in referral bonuses for staff in recruitment push

SMRT offers up to $3,000 in referral bonuses for staff in recruitment push

SMRT is offering up to $3,000 in cash incentives to employees for referring new hires