To compete with Grab and others, AirAsia built a super-app

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AirAsia is initially focusing on the Bangkok market in order to attract more international visitors before expanding into tourist spots such as Chiang Mai and Phuket. There are already 3,000 registered drivers in Bangkok, with plans to add more as tourism expands. You can now download the AirAsia Super App: Fly & Ride app to your phone. AirAsia, a popular low-cost Malaysian airline, debuted its own app for ride-hailing in Thailand today, offering a variety of services ranging from vehicle rides akin to Grab and Bolt, to flight reservations and meal ordering, in an already burgeoning market.

According to Bloomberg Intelligence analyst Nathan Naidu, AirAsia’s entry of the ride-hailing market will be difficult. It will have to pay a lot of money to recruit drivers. However, my experience in other Southeast Asian markets has taught me that Southeast Asians are not yet wedded to their platforms, so they can be persuaded to switch using incentives like coupons and promotions.