Singapore’s Tada ramps up US push, eyes Africa as Grab-GoTo merger looms

[SINGAPORE] As Grab and GoTo edge towards a potential merger that could redraw the region’s ride-hailing map, rival platform Tada is accelerating its global expansion plans spanning the United States and Africa.

After entering Denver in the US state of Colorado last July, the zero-commission ride-hailing firm is preparing to launch in New York City and raise fresh funds to enter Africa in 2026.

Rather than launch independently, Tada opted for a partnership-led entry into the US.

This was done via a partnership with Drivers Cooperative Colorado (DCC), with Tada providing ride-share service technology to the DCC platform. This also allowed Tada to test features different from those in the company’s South-east Asian market.

Key to being accepted by the DCC was Tada’s no-commission-fees stance; instead, the company just charges a fee to upkeep the platform.

“The group of drivers have been growing since the beginning of July last year, and trips have grown from two or three a day – now it’s closer to 100 trips per day,” Kay Woo, founder of Tada, told The Business Times.

That spurred the company to launch in a bigger market in the US, namely New York City. Compared with South-east Asia’s entire ride-hailing market, the city is 1.5 to two times bigger in dollar volume

Tada is targeting a beta launch in the city in May, followed by an official launch in June.

The choice of New York City was due to a couple of factors – the company could take advantage of drivers’ dissatisfaction with eroded fares due to commissions by existing ride-hailing platforms, as well as the lack of competition posed by autonomous vehicles (AVs) in the US’ East Coast.

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“Especially here in New York and Boston, it’s quite hard for AVs to service the region due to the heavy snow, so before it’s too late, we want to deliver the solution for the drivers and at the same time disrupt the market in a different way,” said Woo.

Tada is looking to raise US$100 million in investment to support its growth in both the US and Asia markets. Existing investors have committed to the next round of funding, while some strategic investors are reviewing a potential investment in the company.

Woo did not disclose the investors.

This investment would also fuel Tada’s expansion into Africa in the fourth quarter of 2026. The company will start with Kenya before expanding into neighbouring countries such as Ethiopia and Tanzania.

“Kenya is kind of like the Singapore of Africa; it’s like a very good starting point for the entry of IT services,” explained Woo.

Progress back home

In South-east Asia, Tada has been growing its user network and revenue, and currently has a presence in Singapore, Thailand, Vietnam and Cambodia.

Its parent company MVLLABS has seen revenue grow from S$27.5 million in 2022 to S$46.4 million in 2024 according to filings pulled by data platform Handshakes.

Tada has also rolled out a “say no to commission” campaign in Singapore, setting aside S$1 million to back a community-driven reward system to support drivers rejecting high-commission platforms. Drivers would earn points for the number of trips they made, with multipliers based on a ranking system (Gold for the top 20 per cent, Silver for the next 21 to 50 per cent, and Bronze for the rest).

“After the first month of this campaign, we’ve secured more than 30,000 drivers’ pledges to the ‘say no to commissions’ campaign,” said Woo. The campaign will be reopened at the end of February with more advanced plans for the drivers.

Aside from trying to secure driver supply for Tada in Singapore, the campaign was meant to amplify drivers’ collective voice in a market where platforms typically hold stronger bargaining power.

For instance, Woo pointed out that US drivers’ strikes in 2024 had a limited impact on Uber and Lyft’s operations.

He noted that through Tada’s campaign, drivers could continue earning while sending a message that high commission fees are not acceptable, instead of protesting without income.

As Tada’s top line grows, the company is in a position to reinvest more directly in its driver base to support them, Woo added.

Electric tuk-tuks gain traction

Tada’s electric tuk-tuk, a three-wheeled vehicle which allows for battery switching rather than charging, has also seen growing demand for both its passenger and cargo versions.

Woo said that the cargo version’s popularity especially came as a surprise given its minimal marketing. For the passenger version, drivers get up to 30 to 40 per cent more income than normal tuk-tuk drivers, he noted.

“We have over 600 (tuk-tuks) now, and this year we are expanding to multiple cities in Cambodia... we are also going to send out tuk-tuks to Kenya as well,” said Woo.

He pointed out that African countries such as Kenya have similar transportation needs and cost sensitivities to South-east Asia. The company is working to integrate the vehicles with Kenya’s existing battery network, he added.

The road ahead

Over the next two years, Tada aims to expand across the US, with New York City as its launchpad in the East Coast.

From there, it will expand to neighbouring states such as New Jersey, Pennsylvania and Boston, as well as upstate New York, before moving further inland and towards the West Coast.

It eyes a similar trajectory for its African expansion. After its initial entry into Kenya, the company aims to enter more African countries within the next two years. Tada’s market presence could span over 20 countries across the globe in two years’ time, said Woo.

Back in South-east Asia, the company is observing the possible Grab-GoTo merger, which could create an opportunity for itself in Indonesia.

“We are ready to deliver anytime. Once we make the decision, we can start servicing Indonesia whenever we want,” said Woo.

He added that feedback from Indonesian drivers suggests appetite for a zero-commission alternative. If drivers are already under pressure from commission fees, the consolidation could intensify the situation – that could be Tada’s new opportunity, noted Woo.

“By solving those problems and delivering Tada, and then acquiring the drivers, that’s the beginning for us; and then the speed of expansion is going to be massive,” he added.