Go-Viet, Grab, FastGo … continue to “burn money” in the promotion race to win customers and drivers to gain market share in Vietnam.
The race to “burn money” from ride-hailing apps
Pouring money into promotions to recruit drivers and attract customers are familiar steps of all newly launched ride-hailing apps that want to dominate the Vietnamese market. This race is only for businesses that have the potential and economic backing.
In this “money burning” race, many car-hailing applications in Vietnam are clearly in a “weak position”. After only a short time, Uber left Vietnam, a series of ride-hailing apps were launched. A series of new names such as ABER, Vato, T.Net, Xelo, … came out in order to seize the opportunity when Uber withdrew. However, in the battle with Grab, these applications do not have the advantage. Up to the present time, ABER announced a pause to the application. Vato (after claiming investment from Phuong Trang only operates strongly in Ho Chi Minh City). T.Net or Xelo has not created a real buzz either.
Meanwhile, the applications of traditional taxi firms are quite weak. For example, the G7 alliance created by some taxi companies or the Mai Linh Bike application is not well known.
Under the support of Go-Jek (Indonesia), Go-Viet has officially launched a massive operation in Ho Chi Minh City in early August after a period of testing and promotions that is what customers and drivers know about. use this more.
Currently, Go-Viet provides 2 services of ordering Go-Bike 2-wheelers and Go-Send delivery. Immediately after launch, Go-Viet was “shocked” when launching a promotion of 5,000 VND for trips under 8 km for customers and additional bonuses to ensure a minimum income of 30,000 VND / trip for drivers. . Even during the launch event in Hanoi, Go-Viet let customers go at almost “free” prices. At the same time, extending the promotional price of VND 10,000 for all trips while ensuring drivers’ income.
Go-Viet’s promotion has attracted a large number of driver partners, including Grab’s driver partners. By the end of August, both Go-Viet services were available in almost every district in Ho Chi Minh City and quickly expanded to Hanoi in September.
Meanwhile, though not as strong as Go-Viet, but since its launch, FastGo has also continuously delivered to customers using card payment discount codes and launching hoe reward campaigns to attract drivers.
Under the pressure of competition from two new competitors, Grab also took steps to retain both drivers and customers. Grab continues to pour money on a series of promotions at all services and of course still has strengths. Customers using GrabPay continuously enjoy “0 dong” trips and the reward programs for drivers are continuously extended.
Hot battle for market share
After Uber pulled out, Grab successfully captured the market share of ride-hailing apps in Southeast Asia market in general and Vietnam in particular. However, Grab is facing significant competitive pressure from newly launched ride-hailing applications. In particular, FastGo and Go-Viet are considered to be the two biggest rivals in Vietnam as they continue to expand their operations in order to gain market share of ride-hailing through the application.
With the financial and technological support of Go-Jek, Go-Viet expressed its ambition to dominate the Vietnamese market. CEO Go-Jek said that after 6 weeks of launching, Go-Viet had 1.5 million downloads and reached 35% market share in Ho Chi Minh City.
In mid-September, Go-Viet also attacked Hanoi market. At the same time, it will develop more Go-Car (car-calling platform), Go-Food (food delivery) and Go-Pay (e-wallet) or a range of other services such as calling home beauty services. , call massage staff, go to household market, move house …
FastGo, in addition to being supported by NextTech’s ecosystem, FastGo has just received capital from VinaCapital Ventures investment fund after the signed strategic investment agreement. This is considered a significant advantage of a Vietnamese application in the confrontation with the two “big”.
Also according to the disclosure, after nearly 3 months of official operation, FastGo has recorded nearly 15,000 registered driving partners and more than 50,000 customers registering applications in the two major cities of Hanoi and Ho Chi Minh City. According to the announced plan, FastGo will expand the service to 8 major cities in 2018 and nationwide in 2019.
Meanwhile, although not disclosing market share, Grab said there are over 170,000 partners in Vietnam. At the same time, when the rookies are attracting customers, this application is expanding to new activities in addition to the ride-hailing service. Significant is the ambition to invest in the financial sector after announcing cooperation with Moca.
* Source: ICT News