Riding the wave

Southeast Asia is emerging as a hotspot for ride-hailing and e-logistics innovation, driven by rapid urbanization, a young digital-savvy population, and increasing smartphone penetration. Leading platforms like Grab and Shopee Express have transformed traditional transport and delivery services into tech-enabled, seamless experiences. Ride-hailing has become an essential service in congested cities, offering convenience and efficiency. The sector also fosters financial inclusion, as many drivers and riders are unbanked and benefit from digital payment solutions integrated into these platforms. E-logistics, fueled by the booming e-commerce industry, plays a critical role in supporting last-mile deliveries across Southeast Asia’s countries. Innovations such as AI-driven route optimization and multi-modal transport networks are emerging as solutions to address challenges like traffic congestion and infrastructure gaps. Investment bank Morgan Stanley projects the mobility industry in the region to expand at a 13% per annum through 2028, reaching a market size of approximately USD 13 billion. The Philippines is expected to lead growing 21% p.a., followed by Vietnam at 18% p.a. and Thailand at 17% p.a..

Source: Euromonitor, Statista, Morgan Stanley Research, January 2025.