The ride-hailing surge that once dominated Southeast Asia’s transport headlines is losing its speed. A decade ago, platforms like Grab and Gojek were racing to outspend each other, backed by billions in venture funding and aggressive subsidies that fuelled expansion. By the mid-2010s, Indonesia alone saw tens of thousands of branded motorbikes on its streets, while Vietnam’s ride-hailing user base had since swelled from 22.8 million in 2017 to over 28 million in 2024. That scramble, however, has slowed. Margins have been squeezed after years of discounting, regulations are tightening and running costs, from fuel to maintenance and driver incentives, keep climbing.

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In response, many operators are looking elsewhere for steadier ground. Some are betting on vehicle leasing, others on fleet management software, electric vehicles or a mix of all three. The shift is especially visible in markets like Indonesia, where the ride-hailing industry was worth USD 4.4 billion in 2025 but faces driver protests over low pay and Vietnam, where over 30,000 electric taxis now make up 40% of the country’s taxi fleet. With logistics and e-commerce booming across the region, demand for reliable transport capacity is only rising, just not in the same way as before.

Why the old model is under strain

Ride-hailing and food delivery have never had an easy path to profitability. The early years were built on heavy fare discounts and generous driver bonuses, a formula that won customers quickly but burned through cash. As more players entered the market, prices dropped further, squeezing margins to the thinnest sliver.

Regulation has tightened the screws. Governments across the region have rolled out rules on driver pay, data protection and vehicle standards. For platforms operating in several countries, the patchwork of laws means higher compliance costs and more operational headaches.

Investor sentiment has also shifted. The era of endless subsidies is fading, replaced by pressure for sustainable, predictable earnings. That has sent mobility companies searching for models that don’t depend on constant discounting or expensive user acquisition.

From rides to full-service platforms

Players like Gojek, Maxim and FastGo are broadening their scope. They are investing in tools and services that stretch well beyond the core ride-hailing app:

  • Telematics and vehicle health systems that run diagnostics in real time, flag maintenance issues early and keep fleets on the road longer.
  • Leasing products that give drivers and gig workers vehicles without the burden of buying outright.
  • B2B fleet subscriptions that lock in long-term contracts with logistics firms and corporate clients.

Grab’s partnership with Chinese EV maker BYD shows the scale of this shift. The plan brings up to 50,000 electric vehicles into six Southeast Asian markets, backed by leasing and financing packages. Each vehicle comes with IoT sensors feeding performance data back into Grab’s systems, helping reduce downtime and cut maintenance costs.

In Indonesia, corporates are leaning into full-service leasing to keep transport expenses predictable while handing off fleet management to specialists. Vietnam is seeing its own expansion, with Vingroup’s Xanh SM rolling out electric taxis and motorbikes across borders- a sign that fleet operations in the region are starting to scale internationally.

Why fleet tech works

For platforms, the attraction is simple: steadier revenue and lower costs. Long-term leasing deals reduce the risk of losing clients, while software for route planning and predictive maintenance keeps operations efficient.

For drivers, access to leased or subscription-based vehicles can be more practical than ownership, especially in congested cities where parking is scarce and depreciation is rapid. Keeping drivers in the ecosystem also means the platforms can serve more customers without constantly recruiting new ones.

Policy is adding momentum. Indonesia wants EVs to make up 20% of vehicles by 2025 and Vietnam is offering incentives for electric fleets. Those targets are spurring investment not just in vehicles, but in the systems to manage them: telematics, driver analytics and asset tracking rolled into unified platforms.

What’s next?

The shift into leasing and fleet management could change how transport works in Southeast Asia. In countries where car ownership is still relatively low, mobility-as-a-service may become the default before mass private ownership ever takes hold.

That has knock-on effects. More electric fleets mean more charging stations and new skills in vehicle servicing. Automakers may need to build vehicles that can survive tougher commercial use and be refurbished for second or third leasing cycles. Ride-hailing will remain, but it may not be the sector’s main growth story.

If the next decade is won by the companies that can keep the most efficient, reliable fleets on the road, not the ones that can offer the cheapest ride, then the region’s transport playbook will be rewritten. And it will look nothing like the discount-fuelled battle that made ride-hailing famous.