JAKARTA • In 2015, the shares of Indonesia's largest cab company were soaring, while its revenue reached a record high. Then came Uber, followed by Grab and Gojek, South-east Asia's answers to the revolutionary ride-hailing app.

Competition from the technology titans wiped out US$1.7 billion (S$2.3 billion), or almost 80 per cent, of Blue Bird's market value from a peak. Revenue plunged 23 per cent in three years and the latest quarterly earnings fell to a record low. But rather than give up, the 54-year-old cab operator is seeking to turn the tide. Leading the effort is Ms Noni Purnomo, who succeeded her father in May as president.

Four months into her new job at the Jakarta-based company, Ms Purnomo is banking on technology to transform the flagging business her late grandmother started in 1965. Her plans include focusing on electric vehicles (EVs) made by Tesla and BYD to cut fleet ownership costs and improve efficiency using data.

"We decided to take a huge leap," Ms Purnomo, 47, said at her office in Jakarta last week. "With this leap, we hope we can address our shortcomings" and catch up with rivals.

While sustainability is her immediate priority, Ms Purnomo's goal eventually is to beat the ride-hailing giants that have upended what was once an industry renowned for its steady revenue and dominated by small owners and families like Ms Purnomo's. She is up against Singapore-based Grab, the regional giant that bought Uber's South-east Asian operations last year.

Ms Purnomo's toughest challenge yet may be to convince investors that her company is here to stay and thrive. Blue Bird's shares traded at 2,590 rupiah in Jakarta on Friday. They reached an all-time high of 12,500 rupiah in January 2015, months after Blue Bird raised a modest US$200 million from an initial public offering.

Ms Purnomo has already added about two dozen EVs to Blue Bird's almost 30,000-strong fleet of cabs that operate in the cities of Java, Sumatra, Bali, Lombok and Batam. Eventually, the plan is to have 2,000 of the zero-emission taxis from Tesla and Chinese maker BYD, she said.

EVs may give her company an edge as initial data has shown encouraging signs, she said. The vehicles cost 40 per cent less to operate than fossil fuel-powered cars, and generate 30 per cent more revenue, according to her.

Besides, her rivals cannot replicate this model easily, she said. Their asset-light model would require drivers to bear the financing costs of an expensive EV, a risky proposition for most individuals, she added.

(A representative for Grab did not respond to a request for comments.)

"We have a different business model and the company can take the risk instead of the individual," Ms Purnomo said.

CHARGING STATIONS

The lack of charging infrastructure in the South-east Asian country could pose a hurdle. Right now, Blue Bird has facilities at its main office in Jakarta, while there is one available at the city's airport. President Joko Widodo's government is trying to ramp up charging stations in malls and other public places to help boost sales of EVs.

Blue Bird will also invest in the Internet of Things - an emerging technology that links machines and gadgets and likely to get a boost with the roll-out of 5G wireless networks. IoT will help Blue Bird collect data and improve operational efficiency and help implement dynamic pricing, a variable fare model popular with the likes of Uber, Lyft and Grab.

Ms Purnomo said the company now has the technical capability to fight back and the financial resources to challenge them, without elaborating on how she plans to raise capital. On the other hand, Grab has money to burn. Valued at US$14 billion, it is planning to raise more than US$4.5 billion in its latest funding round.

"Gojek and Grab's low fares have caused a major churn for these taxi companies," said Fitch Solutions analyst Kenny Liew. "The taxi companies need to look at new business models, even partnerships with ride-hailing players, to stay relevant."

RIVAL TIES

Blue Bird already has an alliance with Gojek that allows its fleet to be available on the Gojek app. While it opens up the customer base, it also has the disadvantage of lower margins, Mr Liew said. Gojek offers both motorcycle and cab rides.

A representative for Gojek said the company has also started a pilot project for electric motorcycles and cars in Indonesia. If the vehicles can save costs, that will help drivers, she said in an e-mail.

Ms Purnomo started working at Blue Bird in the mid-1990s. Groomed by her father for a key role in the family business, the engineering graduate held positions in maintenance, customer service and sales before taking a break to finish her master's in business administration at the University of San Francisco.

Competition brought about by ride-hailing companies in the traditional taxi business is "nearing equilibrium", Ms Purnomo said, adding that some customers and even drivers who previously left Blue Bird to try out at rivals have returned.

While investors have pummelled Blue Bird's shares, analysts have been more optimistic. All six tracked by Bloomberg recommend buying it.

"The worst appears to be behind them," said Sinarmas Sekuritas analyst Richard Suherman. "Their transformation, including their plan to build up a better technology platform and dynamic pricing, should help their competitiveness and profitability."

BLOOMBERG