Business Expansion: Learn from Uber and oBike



Nov 6, 2018

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Singapore is definitely one of the examples a country with evolving startup growth. From time to time, there are many companies or startups opening their branches or initiate the business there. However, there is one appealing fact: the gap between the workforce and company in Singapore.

Similarly, the Ministry of Manpower Singapore released that the workforce in the country reached 2,2 million people. Besides, the unemployment rate is just 2,1 percent. But apparently, there is a gap between the supply and demand.

Singapore's Workforce Gap

How could this happen? It's certainly caused by the Singapore citizens who prefer to leave abroad for working or studying, with a surprising ratio: 6 for every 100 Singapore citizens.

Furthermore, let's compare this statistic with the countries like Australia and Japan, with the ratio 3:100 or even less than 1:100. Absolutely, Singapore citizens tend to go abroad.

Whenever this happens, business expansion seems like a good idea.

Business Expansion Challenge

With the supply-demand gap in Singapore, perhaps this could be accomplished thanks to the technology. Moreover, through the current sophisticated technologies, working could be more flexible. Furthermore, the company also could do the expansion.

Theoretically, this seems ideal. But in fact, business expansion is way more complicated than that. First and foremost, certainly the deep research regarding the expansion.

Hence, you need to identify the market situation in the target expansion, including the business competition, demography, and the culture. Don't rush the business expansion merely to expand the network but in fact, you will get a disadvantage due to the lack of consideration.

More to Read : Learn from Uber's Case in Southeast Asia

Learn from Uber's Case in Southeast Asia

Recall the time when Uber withdrew the business from Southeast Asia amid the competition with a similar platform like Grab from Malaysia and GoJek of Indonesia? Surviving for a few moments, Uber must admit that their culture is in contrary to the consumer behavior of Southeast Asia.

Besides, the financial investment would be expensive. The preparation also requires many resources. Once again, Uber did the expansion by developing the apps, recruiting staff and drivers, regulation, and others.

oBike, Real Example of Business Expansion Challenge

Another case that could be an example is oBike, a platform for bike-sharing from Singapore who also expanded the business to more than 20 countries. Likewise, the concept is simple: by the application, the user can rent a bike throughout the city with an affordable fee, payable through the apps.

But, oBike met a dead-end. The government conducted the regulation to limit the parked bike in certain locations.

Certainly, due to this restriction, oBike's operational was becoming limited. Moreover, the fines for users who don't park in authorized areas. Eventually, oBike withdrew the expansions in many countries due to the expensive budget required to comply with the regulation.

Efficient and Affordable Solution

Considering these two cases, definitely, the company should consider the role of employer of record (EOR), another party that acts as your company in other countries. By doing this, the company doesn't necessarily register the entity there.

It means, the company could still become the legal entity and fully authorized to manage the recruitment and resources. On the other hand, business expansion is still possible to commence. Absolutely, this is way cheaper and could recruit the talents faster.

More to Read : Sneak Into the Secret Way Google Recruit Their Talent

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