Business
More ride-hailing apps expected to come to Vietnam
  • | tienphong, dtinews.vn | May 18, 2018 01:45 PM
Ride-hailing companies, MVL from Singapore and Go-Jek from Indonesia, are expected to be the next competitors for Grab in Vietnam.

   

Go-Jek has become the number one motorbike-taxi hailing app in Indonesia

After Grab's acquisition of Uber in Southeast Asia, including Vietnam, local ride-hailing apps like Vato, Mai Linh Bike or Thanh Cong Car have been unable to take the market share and will have to face even more competition as major foreign firms plan to invest in Vietnam.

In early May, MVL held an introduction meeting in Ho Chi Minh City and assigned their representative in Vietnam. MVL is based in Singapore and was created by a group of South Korean founders in 2012. The company has expanded the business to Hong Kong, Taiwan, and South Korea. It is registered as a technology firm in Vietnam and will begin operations in July.

According to MVL, the app uses a blockchain ecosystem so the drivers won't have to pay fare share on each ride to the company. MVL will only collect an "insignificant" fee to maintain the blockchain ecosystem. The users are also connected to the maintenance centre and insurance company via the app.

In early 2018, several newspapers in Indonesia reported that Go-Jek is preparing to enter the Vietnamese market. In Ho Chi Minh City, many recruitment flyers for Go-Viet were found. Many suspected that Go-Viet is a member of Go-Jek. It is advertised that drivers will get fare share reduced by 50% or exempted for one year and will earn at least VND350,000 (USD15) a day.

However, many people have expressed doubts about this news as there is no Go-Viet app on the Apple's App Store yet.

Go-Jek was established in 2010 and has become the number one motorbike-taxi hailing app in Indonesia.

There are also concerns about the rapid rise of ride-hailing apps while the government is too slow to catch up. It may result in negative effects on the infrastructure. Meanwhile, traditional taxi firms said they are faced with unfair competition.

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