New names push ride-hailing offerings

Grab still leads the way in Vietnam, but others are hot on their heels, Photo: Le Toan

In mid-May, Lalamove, the Hong Kong-based logistics platform renowned for its on-demand 24/7 delivery services, launched motorbike and car booking services in Ho Chi Minh City. The move comes after eight years of operating in the country’s delivery market.

Since its arrival in Vietnam in 2017, Lalamove has offered a wide range of vehicle options, from vans and utility vehicles to trucks, handling deliveries of all sizes.

Lalamove said it will offer more travel options at transparent and reasonable prices to customers, including motorbikes and four-seat and seven-seat cars.

Its Vietnam CEO Nguyen Hai Dang said, “The move aims to meet customer demand for more cost-effective travel and improve the income of our driver partners. We hope that our new services will offer additional travel options to customers at reasonable prices, while drivers will have more income to improve their quality of life.”

Lalamove’s invasion is expected to reshape Vietnam’s ride-hailing market, which is currently led by key players such as Grab, Be, and Xanh SM alongside a series of traditional taxi companies. Many other companies are trying to position their brands on the ride-hailing map, such as Tada and HeyU, with Bolt, Uber’s rival in Europe, exploring a potential entry into Vietnam early this year.

According to Rakuten Insight’s survey on the ride-hailing app landscape in Vietnam, published on May 21, Grab is the most widely used brand in Vietnam’s ride-hailing market, with 55 per cent of users in major cities and 54 per cent in other areas reported to be using the service.

Meanwhile, Xanh SM is used by 32 per cent of respondents overall, with slightly higher usage in major cities (33 per cent) compared to other areas (30 per cent). Be accounts for 9 per cent of the market, followed by smaller companies such as Mai Linh, Vinasun, and Maxim.

“A significant majority of Vietnamese ride-hailing app users rely on these services frequently, with 77 per cent booking a car or bike ride at least three times a month. This data indicates widespread popularity of ride-hailing across Vietnam, reflecting a growing demand for convenient transportation solutions and the evolving landscape of urban mobility,” the survey noted.

The e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company estimated that the ride-hailing and food delivery market in Vietnam reached $4 billion in 2024 and is expected to grow to $9 billion by 2030.

Specifically for passenger transportation, the market size is estimated to reach $1.05 billion this year and expand to $2.56 billion by 2030, with an annual growth rate of 19.5 per cent during the period 2025-2030, according to the market research company Mordor Intelligence from India.

Despite the potential of the segment, the ride-hailing market is also highly competitive, requiring players to regularly enhance their services to provide a better experience for customers and remain aligned with current trends.

Grab Vietnam is accelerating its transition to electric vehicles (EVs) through a partnership with China’s BYD, offering attractive income incentives to drivers.

Under a programme launched on May 19 and running through to August 19, Grab and BYD Vietnam offer promotions to encourage drivers to switch from fuel-powered vehicles to EVs.

Perks include a guaranteed income of up to VND25 million ($960) per month for GrabCar Plus drivers, and an eight-year or 500,000-km battery warranty.

The initiative highlights the BYD M6, an electric vehicle with an estimated on-road price of around VND750 million ($28,800), as a recommended model for Grab drivers.

“This collaboration seeks to redefine ride-hailing through advanced technology and luxury comfort,” said Ouyang Xiaocheng, CEO of BYD Vietnam.

Meanwhile, GSM has also been utilising the widespread use of electric taxis in over 50 provinces and cities, with more than 56,000 Xanh SM electric cars and 10,000 electric cars from partners. Currently, GSM has collaborated with over 30 transportation businesses nationwide to expand the network to many localities, bringing about a change in user habits.

Dr Le Hong Hiep, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, said, “GSM treats drivers as employees rather than contractors or partners. Drivers receive a fixed monthly salary, performance bonuses, and other benefits such as four paid days off per month, health insurance, and social insurance contributions. This not only provides drivers with a sense of security but also nurtures loyalty towards the company.”

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