Market Trends of Vietnam Taxi Industry
Ride-hailing Services Anticipated to Play Key role in the Market
The taxi industry has been one of the longest-running industries, contributing significantly to the world's economy. However, the rising demand for ride-hailing and taxi-sharing is replacing the conventional taxi market. Ride-hailing is anticipated to take over the conventional taxi over the forecast period. The increasing volume of transactions made through these digital platforms provided by the shared mobility service companies has been on an upward trend since its launch. The growing motorbike sales in Vietnam and its penetration into the ride-hailing and taxi industries have enabled motorcycles to be the best compatible model of transport (at least for shorter distances), owing to their availability at half the fare of a taxi/ride-hailing car. The entry of app-based motorbike taxi services had predominantly captured the market share of the traditional motorbike taxi, popularly known as 'xe om' in the country.
Traditional taxi drivers are still present in the Vietnamese motorcycle taxi market, especially in tourist areas. The increasing entry of both local and international companies into the app-based motorbike services, with unique promotional programs in the Vietnamese taxi market, is likely to further propel the demand for the app-based motorcycle ride-hailing market during the forecast period.
Online Booking Likely to Gain Traction During Forecast Period
Online booking is dominating the Vietnam taxi market and witnessing major growth during the forecast period. The ease of booking through the app has significantly attracted customers to prefer online booking over offline booking, owing to the increasing usage of the internet and smartphones by people worldwide.
Additionally, information, like tracking the driver position, pre-estimated ride fare, driver contact, and vehicle details available within an app in a short time, has further increased the customer preference for the online booking option.
Many major operators, like Grab, Uber, Ola, etc., provide ride-sharing options (which provide fare-splitting options among co-passengers) in their respective apps in certain regions, capturing the increasing demand for low taxi fare services among customers.
To sustain the growing trend of ride-sharing services, operators have started adopting the same strategy and are trying to incorporate the ride-sharing option in their respective taxi app development. For instance, In Vietnam, Mai Linh, one of the major taxi operators in the country, is trying to focus on providing ride-sharing services to overcome the country's mobility challenges, like traffic congestion and population. The company partnered with Kyyti Group to enable plans to launch ride-sharing service in Vietnam in the future.
Such active engagement of players in the market and their growing focus on widening the customer base through online booking mediums are expected to create a positive outlook for the market during the forecast period.
