Grab Clone Ride Sharing App Development for Vietnam : Opportunities and scope of ride-sharing apps and business in Vietnam

How to Starts Ride-Sharing Business in Vietnam Opportunities and scope & Ride-Sharing App Development Cost and Estimation

Uber’s business in Southeast Asia has been acquired by Grab. Later, Vietnam has seen a number of new ride-sharing platforms. These ride-sharing platforms are both foreign and local. These also include existing taxi operators keen for a slice of the growing market.

How to Starts Ride-Sharing Business in Vietnam Opportunities and scope & Ride-Sharing App Development Cost and Estimation

The Aber app was launched in Ho Chi Minh City which is the biggest market in Vietnam for ride-sharing platforms. Aber was developed by a few young engineers in Vietnam. They were studying in Germany.

The Aber app was first launched in Hanoi which is the capital city. The company along with Grab and Uber has promised that they will not be raising any charges during the rush hours. Many people criticize the high charges made applicable for ride-sharing during the rush hours.

Aber provides six main services which include Aber Bike, Aber Car, Aber Truck, Aber Travel, Aber Business, and Aber Express. The travel service targets local and foreign visitors. The driver of the vehicle also serves as a city guide. The company is also training the drivers in English language and other tour skill.

According to Huynh Le Phu Phong who is the business development director, the international travelers to Vietnam grew 29% year on year to 13 million people. Aber’s full form is Am Besten Fahrer in German or Absolute Driver in English.

The company’s system has a German technological platform. They have their own map that is independent on Google. Huynh said the startup has the technology, financing, and human resources to develop, and intends to expand into neighboring markets by 2020.

Google recently announced that Southeast Asia’s ride-hailing market has increased quadruple since 2015, and will be worth $20 billion by 2025. Grab is the most prominent player today and is accessible in some 200 cities following the Uber takeover.

Vietnam is experiencing more accelerated growth in the area than other parts of Southeast Asia. The number of businesses offering services through Grab and Uber has risen from 233 to 491 in the last two years, according to the transportation ministry.

Domestic startups and the regional companies as well, are racing into the market. Go-Jek has also launched its services in Vietnam and has jumped in to join the competition. Another ride-hailing app from Mpos Vietnam Technology called Fastgo is also being the next one in the race. Mpos Vietnam Technology is a subsidiary of Nexttech which is a Vietnamese technology group involved with e-commerce, e-logistics, and fintech. The company has been inaugurated in Hanoi and strives to have five million users and 20,000 drivers by 2020, with services in eight important cities offering taxi and limousine services.

VATO is another app developed by Phuong Trang transport company. The app entered the market by the end of June. There are more than a dozen businesses that will soon be competing with each other in the market. Indonesia-based Go-Jek, China-based Didi Chuxing, and Singapore-based MVL have all stated intentions to join Vietnam’s transportation market.

The local governors have supported startups and surviving taxi operators to start their own apps to challenge Grab’s powerful position in Vietnam.

The Vietnamese operators are expected to offer comparable apps to compete reasonably in the market. Nguyen Hong Truong, the former deputy minister of transport said while backing the startups in Vietnam.

Also read : Grab App Clone: Provide your customers with multiple services through a single app with a super app strategy like Grab

 
Grab faced a few legal headwinds over the Uber merger. Hanoi started an inquiry into the deal. Grab stated that the market share of the company in Vietnam is below 30%. However, the Vietnam Competition Authority (VCA) put Grab’s market share at over 50%. Later, Grab got permission to run 5-year programs running until 2020 in Hanoi, Danang, and Ho Chi Minh city, as well as Quang Ninh and Khanh Hoa provinces.

Grab is going to concentrate and put its efforts on Vietnam with a $500 million investment. They are planning to grow its activities in the country over the next five years. Grab has not just remained as a ride-hailing company. It has grown to much more than that.

The organization has matured as a “super app” which can be operated to order a ride, order food from restaurants, make payments, get insurance products, loans, and other such activities. The company is precisely dominant in Southeast Asia.

The company lately declared that it would employ some of the $7 billion that it has raised till today to speculate on Indonesia. Grab is planning to invest $2 billion in the Indonesian market to improve the country’s transportation infrastructure.

The government in Indonesia is backing the move. The ride-hailing company is grabbing this opportunity to gain market share. And with today’s investment, Grab is actually doing the same thing at a smaller scale in Vietnam. Grab is taking the help of the government officials once again. It has declared a “Tech for Good” road map in the country that should promote Vietnam’s economic expansion at a great speed.

Grab intends to present work possibilities in 63 cities in order to combat unemployment. The company is finding drivers, delivery persons, and merchants to hire. These people will be able to check out the credit and insurance products. But, this plan is only going to work out if the company is able to get enough customers over the long term in those cities.

The company is also planning to spend on local startups through GrabVentures. Grab will also start schedules to enhance digital and financial literacy. Eventually, Grab plans to share data with local governments. They wish to tackle traffic gridlock and pollution.

Grab is now quite influential in Vietnam. For example, GrabFood now handles 300,000 food deliveries per day. There is a 400% rise in gross merchandise volume throughout the first half of 2019. Grab drivers have made close to $1 billion in profits over all these years.

Start Ride-Sharing business today – Ride Sharing App Development for Vietnam

 
So, if you are ready to join the ride-hailing competition in Vietnam, there is a huge opportunity for your startup. Coruscate can help you out by being your technology partner. We can adorn your app with the latest technologies and help you in giving tough competition to the giants like Grab. For more information, you can connect with us for a free consultation session. 

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