The Competition among Ride-hailing Apps in Vietnam Gets Fierce

Diep Nguyen

14:57 13/09/2018

BizLIVE -

While Grab operates under one brand in eight Southeast Asian nations, Go-Jek chose to go local, using the Go-Viet brand for its Vietnamese operations -- a decision made after "massive debate" conducted within the company.

The Competition among Ride-hailing Apps in Vietnam Gets Fierce

Photo: Nikkei

GO-VIET, the on-demand multi-service platform supported by GO-JEK, yesterday commenced operations in Hanoi. The news was announced as the company marked its official full launch in Vietnam at an event in the capital, attended by Indonesia’s President Joko Widodo as well as Vietnam's Minister of Transport Nguyen Van The.
According to the company, the company will provide two-wheel ride-hailing (GO-BIKE) as well as courier services (GO-SEND) to consumers. This means GO-VIET is now present in two major cities in Vietnam, having commenced limited operations in Ho Chi Minh City six weeks ago.
Speaking at the launch event, Duc Nguyen, GO-VIET’s Co-Founder and CEO said: “We are so proud that the people of Vietnam have responded so positively to GO-VIET. They have shown such enthusiasm for our services since we began operations in Ho Chi Minh City a few weeks ago.
GO-VIET is the first of GO-JEK’s international operations to launch. Its arrival means the world-class technology on which GO-JEK is based is now available to millions of Vietnamese people.
Speaking at the launch event, Nadiem Makarim, CEO and Founder of GO-JEK, said, “We’re proud to share our uniquely Indonesian technology and to see people in other countries benefit from it through increased efficiency in urban mobility and most importantly, through improved overall welfare.  We’re so excited about what the future might hold for us in Vietnam, not least because the management team at GO-VIET shares our determination, passion and enthusiasm for using technology to create a positive impact on society.
“The success we’ve seen so far proves that Vietnam is in need of more safe, reliable and convenient services. Consumers need more choice and the market needs more competition to allow the industry to grow sustainably. "
“We are very grateful to the Vietnamese government as well as the people of Vietnam who have made GO-VIET possible and welcomed us so warmly. We would also like to thank the Government of Indonesia for its continued support, which has allowed us to reach beyond Indonesia to support people internationally."
Nikkei just published an article commenting about the competition between Go-Viet and Grab in Vietnam. Accordingly, the fierce competition between Southeast Asia's leading ride-hailing service Grab and its Indonesian rival Go-Jek is set to explode across borders as the latter rolls into Vietnam with plans for further regional expansion.
While Grab operates under one brand in eight Southeast Asian nations, Go-Jek chose to go local, using the Go-Viet brand for its Vietnamese operations -- a decision made after "massive debate" conducted within the company, according to Go-Jek founder and CEO Nadiem Makarim.
Uber's legacy in Vietnam still lingers, however, with some former Uber executives having joined Go-Viet, including Nguyen. Go-Viet is also attractting former Uber drivers and customers.
Thanh Hung, once an Uber driver in Ho Chi Minh City, said he originally tried to work with Grab following Uber's departure, but was turned off by the working style. "After Go-Viet launched in Vietnam, I registered to work with them," he said. "I'm happy, and many other ex-Uber drivers are also working for Go-Viet thanks to the company's good driver policies," saying that these include a better commission.

DIEP NGUYEN

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