Vietnam witnessed significant growth in the Ridehailing market in vietnam as many domestic startups and ASEAN companies have entered the country. Moreover, the country's ride-hailing market is anticipated to register a compound annual growth rate.

The report says that the increasing economic impact of the internet and the implementation of the new Decree No.10/2020 in the transportation industry in Vietnam are the two primary factors.
On the rise to become the invincible giant in the battleground.

And, The entry of app-based motorbike taxi services have predominantly captured the market share of the traditional motorbike taxi, popularly called “xe om” in the country. In Viet Nam, Grab is the first company in Vietnam to launch GrabBike, an app-based motorbike taxi initially promoted in Ho Chi Minh City in November 2014, which spread throughout the country in 2015.

Moreover, 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.

And today’s Grab

In Viet Nam, 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, as well as ability to ride a high-end motorbike.

The other companies like bE Group JSC and Gojek entered the app-based motorbike service business in Vietnam in 2018. Gojek officially launched GoViet in Ho Chi Minh City in 2018.

Traditional xe om drivers are still present, especially in tourist areas. However, the app-based motorbike services dominate with more than 60 per cent of the country’s motorbike taxi market. The ride-hailing market is a highly consolidated market with dominant players like Grab, be Group JSC, Gojek (GoViet), and FastGo in Vietnam.

How Grab captures its customers

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.

Grab entered the country when “ride-hailing” was still a strange concept to most Vietnamese people, except informally. It was a lucrative market fresh off from the smartphone boom, which prompted Grab to quickly capitalize on it. 

And, the aforementioned generous spending also means Grab is more able to churn out attractive discounts for their rides and services. Drivers are paid sufficiently, and passengers are also happy due to the convenience that Grab provides them, as well as the appealing prices.

Here a reason how grab became no.1 of the ridehailing market in Vietnam