New York, May 12, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Vietnam Ride-Hailing Market -Growth, Trends, and Forecast (2020 – 2025)" - https://www.reportlinker.com/p05891635/?utm_source=GNW
Among cities in Vietnam, Hanoi is likely to show a faster growth rate in the ride-hailing market owing to the launches of new ride-hailing services from companies, like Grab, FastGo, and Go-Jek (Go-Viet), during the forecast period.
Some of the key players in the ride-hailing market in Vietnam include Grab, Go-Jek (Go-Viet), BE Group JSC, FastGo, MyGo, and Vato. Grab captured more than 70% of the ride-hailing market in the country, during 2019.
Key Market Trends
Motorcycle Ride-Hailing Service to Witness Faster Growth
Motorcycles/bikes, for more than two decades, are the most widely used modes of transportation by the people in Vietnam. As of 2019, out of 96 million population in Vietnam, nearly 49 million owned motorbikes. Over the past three years, the country has registered nearly 3 million motorbike sales each year, owing to the growing affordability, due to the improvement of their average monthly income. The growing motorbike sales in Vietnam and its penetration into the ride-hailing and taxi industries have enabled motorcycles as the best compatible model of transport (at least for shorter distances), owing to their availability at half the fare of a taxi/ride-hailing car.
The entry of app-based motorbike taxi services had predominantly captured the market share of the traditional motorbike taxi, popularly known as “xe om” in the country. Grab is the first company in Vietnam to launch GrabBike, an app-based motorbike taxi, initially promoted in Ho Chi Minh City (HCMC) in November 2014 and which had spread throughout the country in 2015. Following the footprints of Grab, many other app-based motorbike services, like Go-Jek, Aber, FastGo, VATO, MyGo, and Be Group JSC, had launched in the Vietnamese motorbike ride-hailing market during 2018-2019.
FastGo began its FastBike Pro service in Hanoi in January 2019. It tested FastBike Pro since August 2018, with the difference being a greater focus on professional two-wheeler services, as drivers must undergo a rigorous recruitment process, assessing their ethics and attitudes, and ability to ride a high-end motorbike. FastGo also provides health insurance packages worth up to VND 20 million (USD 860) and insurance related to theft or new vehicle purchases, of VND 20 million (USD 860), to attract drivers, especially students.
The other companies, like BE Group JSC and GO-JEK, entered the app-based motorbike service business in Vietnam in 2018. GO-JEK officially launched Go-Viet in Ho Chi Minh City in 2018. GO-Viet app was offering services, like GO-BIKE and GO-SEND, on trial period in some districts of Ho Chi Minh City in July 2018. After testing, GO-Viet expanded to Hanoi and other provinces of Vietnam.
In Vietnamese motorcycle taxi market, traditional xe om drivers are still present, especially in tourist areas. However, the app-based motorbike services dominate with more than 60% share in the country’s motorbike taxi market. The increasing entry of both local and international companies into the app-based motorbike services, with unique promotional programs in the Vietnamese taxi market, is likely to, further, propel the demand for app-based motorcycle ride-hailing market during the forecast period.
Hanoi to Witness Rapid Growth
According to the Hanoi Union of Transport Technology Cooperatives, as of 2019, more than 14,000 tech-based cars were operating in the Hanoi City.
With the introduction of new Decree, nearly 77 taxi firms in the Hanoi have a potential scope to build and launch their own ride-hailing app in the coming years. Among these taxi firms, Mai Linh and TaxiGroup are popularly used taxi services in Hanoi city, providing online booking options through their apps.
Some of the prominent ride hailing companies in Hanoi include Grab, Be Group JSC, MyGo, FastGo, VATO, and Aber. These companies have been competing to provide best and unique services to the customers in Hanoi city. For instances,
In 2019, FastGo was planning to provide the airport ride services at fixed locations around Hanoi from only VND 99,000 (USD 4.25). Guests heading out to Noi Bai International Airport will be able to book a ride 90 minutes in advance via the FastGo app. Customers have to get themselves to FastGo’s waiting places, which are evenly distributed around Hanoi with the goal of each person being no less than 1 km away. FastGo is piloting eleven places and is expected to introduce 100 by 2020. The list will be constantly be updated on the FastGo app, including major sites, such as the Hanoi Opera House, Times City, and Royal City.
Similarly, Grab, recently in 2020, introduced an “advance booking” service in Hanoi, where the service allows customers to book a ride at least seven days in advance. The company plans to test the service in Hanoi in February 2020 before rolling out in other provinces and cities in the near future.
But due to the outbreak of coronavirus pandemic, these strategies of providing new services are not likely to attract potential customers for few months in 2020, due to the city lockdown. However, after this current situation, these strategies are, likely, to bring more convenient and smarter experiences to the customers and will, in turn, contribute to a sharing, seamless, and smarter mobility future.
Competitive Landscape
The ride-hailing market is a highly consolidated market with dominant players, like Grab, be Group JSC, Go-Jek (Go-Viet), and FastGo in Vietnam.
The biggest threat to Grab in the future may come from “Be,” the latest local player in the Vietnamese ride-hailing market. The company asserted that it was able to drum up hundreds of millions of dollars in local investment. Be has another ace up its sleeve – it is registered as a transportation service, not just as a tech company. This may make all the difference with new Decree implementation in the future.
Go-Viet partnered with local firms and focused on the two-wheel bike hailing market are two factors that drove the company to gain around 20% of the two-wheel ride-share market in centers, like Ho Chi Minh City (HCMC). Additionally, the company is yet to foray into the four-wheel ride-share segment in Vietnam.
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Read the full report: https://www.reportlinker.com/p05891635/?utm_source=GNW
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Vietnam Ride-Hailing Market -Growth, Trends, and Forecast (2020 – 2025)
The Vietnamese ride-hailing market (hereafter, called as market studied) is anticipated to register a CAGR of about 16. 81%, during the forecast period, 2020 – 2025. The increasing economic impact of the internet, and implementation of new Decree (Decree 10/2020) in the transportation industry in Vietnam, are the two primary factors that are, likely, to propel the growth of the ride-hailing market, during the forecast period.
| Source: ReportLinker