Ride-hailing market quintuples in last 4 years

Created 09 October 2019
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Vietnam’s ride-hailing market is estimated to be worth $1.1 billion this year, up from $200 million in 2015, according to a new study.
Ride-hailing market quintuples in last 4 years

It was the fourth largest after Indonesia, Singapore and Thailand in Southeast Asia, a study of six markets done by Google, Singaporean state-owned holding company Temasek and U.S. global management consultancy Bain found.

Ride-hailing was the smallest of the four key components ofbehind e-commerce ($4.6 billion), online travel, which includes flights, hotels and vacation rentals ($4.1 billion) and online media ($2.8 billion).

But it was one of the country’s most promising sectors, and was expected to hit $4 billion by 2025.

Four years ago ride-hailing players had simply focused on providing alternative transportation services through an app, but the sector had since transformed to offer a range of services including food delivery and financial services.

Food delivery had rapidly become a key driver of growth and profitability for ride-hailing giants Grab of Singapore and Go-Jek of Indonesia. They were the current leaders in online food delivery in Southeast Asia’s largest markets.

In Vietnam, Grab and Go-Jek, through local subsidiary Go-Viet, despite being late entrants in the market, were using various measures to attract and capture customers from well-known names such as Now by Foody, Vietnammm and Lala.

The two had been spending a lot of money on promotions across a wide range of food and drinks and signing up celebrities to endorse their services, including pop diva My Tam and football national team goalkeeper Bui Tien Dung and striker Nguyen Quang Hai.

But competition was tough, with some big names like FoodPanda pulling out of the market and some of the most popular apps like Lixi and Lala reporting slow business.

A Euromonitor report said the Vietnamese food delivery market was worth $33 million last year and is expected to top $38 million by 2020.

A survey by market research firm GCOMM found 99 percent of respondents using food delivery services at least two or three times a month and 39 percent using them two or three times a week.

Source: VNE

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