MVL Chain to bring blockchain-based ride-hailing app to Vietnam

MVL Chain from South Korea to bring blockchain-based ride-hailing app for the first time to Vietnam

Speaking at the introduction conference organised in Ho Chi Minh City on May 5, CEO Kay Woo stated that Vietnam is considered a key market of MVL (Mass Vehicle Ledger) and that the firm submitted the dossiers to establish a legal presence in Vietnam and operate as an IT firm.

MVL will start to recruit drivers within this month and in case the dossiers are approved on time, the firm will launch the app in July. Drivers will not have to pay commission and the company will make a profit from selling data generated from its daily operations to insurance and market survey companies. This way, the firm expects to attract more drivers.

Besides, the firm targets acquiring a 25 per cent market share of all four-wheel and two-wheel vehicles in Vietnam.

According to CEO Kay Woo, the advantage of the firm’s ride-hailing app is using blockchain technology, which utilises a growing list of digital records which are linked and secured using cryptography. A blockchain system can act as a secure, open, and transparent distribution ledger to record transactions between two parties. Blockchain technology can be applied to manage assets, contracts, and global payments.

Kay Woo added that along with the advantage of using blockchain technology, the firm will focus on luring in customers via a low-fare policy instead of pouring money into promotion programmes like Grab and Uber.

Along with MVL, international and local firms are ready to join the ride-hailing race. The Fastgo ride-hailing app is ready to be launched after three years of software development. The app is built by Mpos Vietnam Technology JSC after the order of a large-scale taxi firm from Indonesia and Taxi Open99 Group from Vietnam.

Fastgo offers advantages for both drivers and customers. Notably, with the exception of a fee to join the app, drivers will not have to pay commission to the operators of Fastgo.

Customers will enjoy lower fares than with both traditional taxi brands and Grab. Besides, customers will be insured against any incident occurring during the trip, including traffic accidents or personal injured due to conflict with the driver.

Besides, Phuong Trang Futa Group, a leading passenger transportation and parcel delivery company in Vietnam, invested VND2.2 trillion ($96.53 million) into developing the ride-hailing app Vivu and changed its name into Vato.

Vato will not lure in customers via promotion programmes. Instead, it will offer numerous advantages compared to its competitors.

Notably, drivers and customers can discuss the fare based on an initial fare issued by Vato. For example, after a customer orders a vehicle for a 5-kilometre ride, Vato will offer a fare of VND50,000, which the customer can then discuss with the driver.

Besides, Vato’s base fare is VND8,500 per kilometre (similar to the fare of Uber), however, it only charges a 20 per cent commission, 5 per cent less than Uber.

Furthermore, once customers download the Vato app, they will be able to order vehicles from other taxi firms, including Mai Linh and Vinasun.

Furthermore, China-based ride-hailing player Didi Chuxing is waiting for the Vietnamese government’s approval to start operations in the country. In addition, motorcycle ride-hailing transportation provider Go-Jek from Indonesia has gathered a team of experts to advise its expansion in Vietnam to break the dominance of Grab.