Saturday, 16 Dec 2017

Locally developed ride - hailing apps competing with Uber and Grab

Updated at Saturday, 30 Sep 2017, 11:38
The Hanoitimes - Recently, in addition to new ride-hailing applications being introduced to customers by traditional taxi firms, start-up companies also join the market for app-based transport services, which focus on long trip. These are changes in Vietnam’s transport market after the presences of Uber and Grab.
Customers now have more choices from many ride-hailing apps.
Customers now have more choices from many ride-hailing apps.
Customers nowadays have many choices with regard to ride-hailing apps, with the most recent is Noi Bai Online, with an aim to serve customers going to and out of the Noi Bai Airport. Previously, the transport market has witnessed the introduction of Taxi Go, 123 Xe, Carento, and others. Moreover, other big taxi firms like Vinasun, Mai Linh, and Taxi Group also focus on developing their own ride-hailing apps.

The birth of numerous ride-hailing apps is based on the fourth industrial revolution 4.0, and the development of economic sharing. However, these apps are always compared to Uber and Grab as the benchmark for similar services. There are 3 groups for ride-hailing apps.
Many ride-hailing apps have been developed by taxi firms to compete with Uber and Grab.
Many ride-hailing apps have been developed by taxi firms to compete with Uber and Grab.
The first group consists of Uber and Grab. These app-based transport services is for customers in short trip. Uber and Grand have strategically carried out their services in major cities right after approaching the Vietnam’s market. Customers right after requesting their demand can be picked up a few minutes later with a few simple steps in smart phones. The apps will inform drivers nearby of the location of customers as well as the transport fee.

The second group are taxi firms. With the growing pressure from Uber and Grab, taxi firms have developed counter measures to regain their market shares. They focus on imiproving quality services and technology to interact with customers. Vinasun, Mai Linh, Taxi Group, and Thanh Cong have introduced their own ride-hailing applications. Some enterprises also offer contract car service (similar to Grab and Uber) with the brand Vcar Of Vinasun, ThangCong car of Thanh Cong, and Noi Bai Online of Noi Bai transport services.

The third group are start-ups. Witnessing the success of Uber and Grab, more and more start-ups in Vietnam are joining the market for ride-hailling apps. Vietgo, Carento, 123Xe, Taxi Go, and others will support cutomers to connect with drivers. These apps focus on long trips, which is currently not being offered by Uber and Grab.

The presence of ride-hailing apps for long trips has turned the route to/from the Airports into fierce competition. These long trip ride hailing apps focus on customer demand of more than 30km trips, which is also the distance from Hanoi center to Noi Bai airport. The participation of many kinds of ride-hailing apps have reduced the transport fee. As such, a trip from Hanoi center to Noi Bai airport with the previous price of 200,000 VND now is 160,000VND. Uber even offers the price of 150,000VND for the same trip.

Reality shows customers do not have the need to install longtrip ride hailing app in their smart phones. Because their demands for long trip are not continous and as many as for short trips. Statistics from App Store and Play Store show, the download number of Carento, 123Xe, Vietgo, Taxi Go are not many, which are only of thousands. As such, many approach channels have been developed to meet the demand of customers. Representative of Carento said, the ride hailing app is one of its way to contact customers, which includes website, call center, and the apps in smart phone.

In addiiton to the trend of ride hailing app, there remains transport firms focusing on specific segment of the market. Director of Di Chung JSC Nguyen Thanh Nam said, the company focuses on shared car services. Through cooperation with taxi firms, the company offers professional share car services, so that customers can save money when going to the airport, long trips or travel. For example, if customers are willing to share their trip with others, so the transport fee from Hanoi center to Noi Bai airport will be 100,000 VND.
Nguyen Tung
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