HANOI (Agencies): Vietnam's ride-hailing market value is estimated to reach US$880 million in 2024, Vietnam News Agency reported Friday, citing India-based market research firm Mordor Intelligence.
By 2029, the market value will hit US$21.6 billion, growing at a compound annual growth rate of 19.5 per cent, said the firm.
Consumers' increasing preference to private transportation for the sake of convenience and the growing number of tourists are major factors to boost the ride-hailing market, according to the report.
Ho Chi Minh City in southern Vietnam is the largest market for ride-hailing in the South-East Asian country. Xanh SM, Grab and Gojek are emerging as dominant players.
Meanwhile, Vietnam News reported the rise in travel and tourism and the emergence of a young and tech-savvy population have further fuelled the adoption of ride-hailing services.
Passenger cars will continue to be the largest segment because they offer a comfortable and personalized mode of transportation, catering to the preferences of Vietnamese consumers led by the growing urban population and increasing disposable incomes.
The growing urban population and increasing disposable incomes have led to a rise in demand for convenient transportation options, particularly among urban commuters and young professionals.
Citing statistics that Vietnam’s internet coverage reached nearly 80% in 2023, the increasing penetration of smartphones and mobile apps aids consumers in accessing ride-hailing services and booking passenger cars on the go.
The report found that Ho Chi Minh City was the largest market for ride-hailing in Vietnam.
The Vietnamese Government is also encouraging the adoption of electric vehicles, which is a pivotal measure to combat transport challenges.
The government also aims to reduce greenhouse gas emissions, alleviate traffic congestion, and improve overall urban living conditions.
These efforts will create a conducive environment for expanding ride-hailing services in the city, the report said.
Xanh SM, the first-ever totally electric taxi company in Vietnam, has been aggressively expanding its market foothold through its strong partnership growth with several taxi firms across the country including Lado Taxi, Son Nam, Thanh Ha Transport, ASV Airport Taxi, En Vang and Taxi Xanh Sapa.
According to Mordor Intelligence, the Vietnamese ride-hailing market is moderately consolidated, with players like Grab Holdings, Xanh SM, Be Group, Go-Viet and FastGo.
Xanh SM, Grab and Gojek are also emerging as dominant players in the digital side of Vietnam’s ride-hailing market.- Agencies
