By SGN | Updated 26 Aug 2024
For most, the daily commute is a source of tedium and frustration. For Terence, it was an unexpected source of inspiration.
“I used to drive alone to commute from Bishan to Tuas for my job in the Navy,” he shares. “As a result, I always had three empty seats.”
Realising that these three empty seats could be potentially put to good use, he thought: why not utilise them for carpooling instead of letting them go to waste?
“Not only is carpooling a more environmentally friendly way to commute, but it also helps people save on taxi fares and reduces overall traffic congestion on the road,” he says.
From the Navy to Harvard
Terence served in Singapore’s Navy for around eight years to fulfil a bond from a scholarship that supported his studies at the London School of Economics and the Massachusetts Institute of Technology. During his service, he rose from Principal Warfare Officer to Commander of a warship.
While excelling in the Navy, Terence maintained a keen interest in finance and economics. Upon completing his bond, he decided to pursue an MBA at Harvard Business School.
“Harvard was truly a transformative experience,” he reflects. “Being surrounded by incredibly smart individuals made me realise my potential to make a meaningful impact in the world.”
There, Terence collaborated closely with his peers on various projects. “One of the most useful things I learned there was the case method, where we analyzed about 600 cases of varying business problems across industries,” he shares. “This gave me a deep understanding of different business challenges and solutions.”
Rocky roads at first
After Harvard, Terence went on to work in the finance sector for a couple of years as he wasn’t quite ready to take the entrepreneurial plunge just yet. By 2014, he felt that the timing and technological landscape were finally aligned for his carpooling app idea.
“We had GPS, smartphones, and digital payment systems,” Terence explains. “These technologies weren’t available in the early 2000s.”
Terence left his job and dived into the startup world, launching Ryde, the world’s first on-demand carpooling app. Since he lacked programming and coding skills, he initially outsourced technological development. Over time, he transitioned these operations in-house to enhance control and efficiency.
And although Terence was confident in the potential of his idea, getting others on board took a great effort, especially since a carpooling app was relatively unheard of in those days.
“We distributed flyers and engaged potential drivers in carparks across Singapore such as Punggol and Choa Chu Kang,” Terence recalls. “We strategically timed our efforts for midnight when the carparks were busiest, continuing until 7 am.”
How Ryde works
From there, Terence would introduce drivers to Ryde, explaining the concept of carpooling.
“Carpooling is more cost-efficient and the most economical point-to-point option,” he says. “By sharing the ride expense, carpooling significantly reduces costs for each rider compared to carsharing, where one person covers the entire vehicle rental cost.”
He would highlight how Ryde’s real-time carpooling app reduces traffic congestion by maximising vehicle occupancy.
“Our AI-powered matching algorithm connects riders with drivers, reducing single-occupancy vehicles, leading to fewer cars on the road and improved fuel efficiency,” he shares.
To retain drivers and minimise turnover, Ryde offers competitive incentives, including a 0% commission policy for private-hire and taxi drivers, compared to the industry average of 20%.
“Passengers want to pay less, and drivers want to take home more,” Terence explains. “By allowing drivers to retain more of their earnings, we foster greater driver satisfaction.”
As more drivers joined the app, Terence expanded marketing efforts and began partnering with companies to raise awareness and promote carpooling as an eco-friendly transportation option. “We are committed to leading the movement towards a more sustainable and efficient future in urban transportation.”
Standing out from the crowd
When Ryde first launched, it was the sole carpooling app in Singapore.
However, as Singapore’s startup ecosystem flourished, more players entered the market. Today, ride-hailing apps like Grab and Gojek, as well as carsharing services such as GetGo and BlueSG, have become household names.
While this could have been a cause for concern for Terence, he viewed it positively. “I think competition is good,” he says. “It pushes you to think more critically and come up with better ideas.”
For Ryde, this meant exploring unique partnerships that set them apart from competitors.
Their latest collaboration is a strategic partnership with Singlife, which enhances ride-sharing safety and offers better protection across different insurance services, for riders and driver-partners.
RydeSafe, Ryde’s flagship safety initiative for riders, now comes with complimentary coverage until September 30, 2024. This includes up to S$15,000 for death or permanent disability, S$1,000 for injury, and S$20 in RydeCoins for emergency assistance.
“Our partnership with Singlife significantly enhances the value we provide to our users, ensuring their peace of mind for every trip,” Terence says. “This collaboration is a perfect fit with our common goal to prioritize user protection, safety and to drive continuous innovation.”
Forging a milestone on the NYSE, Frankfurt & Stuttgart Stock Exchanges
Ryde has come a long way since its inception as a carpooling service.
Today, it offers a comprehensive suite of transportation solutions, including private-hire bookings (RydeX), taxi bookings (RydeTaxi), pet-friendly transportation (RydePet), premium services (RydeLuxe), and an on-demand courier service (RydeSend).
In March 2024, Ryde made history as Singapore’s first ride-hailing company to list on the New York Stock Exchange (NYSE), joining an esteemed group of Singaporean firms such as Sea and PropertyGuru.
In June 2024, Ryde announced its secondary listing on the Frankfurt (FSE) and Stuttgart (XSTU) Stock Exchanges, strategically expanding its investor base and making Ryde’s unique value proposition more accessible to the European markets.
The milestone marks Ryde’s decade-long ascent from a Singapore startup to a globally recognised company, significantly boosting its visibility and credibility. The capital raised from public investors, along with the influx of new investors, will fuel Terence’s plans for global expansion and technological advancements.
“Becoming the first Singaporean ride-hailing startup to achieve this milestone validated our vision of transforming urban mobility,” Terence remarks. “It also showcased Ryde’s success and potential to promote sustainable transportation on a global scale.”
On a personal level, this achievement was both humbling and a source of immense pride for Terence. “It was the culmination of years of hard work by our entire team,” he reflects.
The long ride ahead
Terence plans to continue advancing Ryde by enhancing user experience and promoting sustainability initiatives.
Moving forward, Terence is focused on taking user and driver experience to the next level.
“We’re integrating advanced AI for smarter bookings, improving our app’s UX/UI, and upgrading our tracking system for quicker matches,” Terence explains.
Additionally, Ryde strives to boost driver engagement by offering improved deals and benefits. “We actively listen to their feedback to refine our policies, operations and products,” he adds.
Ryde is also ramping up sustainability efforts. Plans include partnering with electric vehicle firms to develop a greener fleet and collaborating with like-minded organisations to promote eco-friendly travel.
Based on his experiences, Terence offers his advice to aspiring entrepreneurs. “Building a successful startup hinges on solving real problems, perseverance, and assembling the right team,” he says. “For Ryde, we’re here today only because of a dedicated, diverse team that works hard through setbacks.
“Embrace challenges, learn from them, and continuously evolve – that’s the essence of the startup journey.”
Interested in working in Singapore or starting a business here?
Find out more about the new Overseas Networks & Expertise (ONE) Pass as well as other work passes that may suit you.
Meet Terence
Terence Zou is the CEO and founder of Ryde, a pioneering super mobility app that transforms urban transportation with a comprehensive range of services, including carpooling, private hire taxis, and delivery.
Connect with him here.
