VIETNAM’S RIDE-HAILING MARKET ATTRACTS GLOBAL AND LOCAL COMPETITION

As European unicorn Bolt explores a potential entry into Vietnam’s ride-hailing sector, the market is undergoing significant shifts, with local players Be and Xanh SM steadily gaining ground against Grab.

Vietnam’s ride-hailing market attracts global and local competition (Source:Bolt.eu)

In early January 2025, Vietnam’s ride-hailing market was abuzz with speculation over the potential entry of European tech unicorn Bolt.

Specifically, Bolt has begun laying the groundwork for its potential entry into Vietnam, with recruitment efforts now visible in Ho Chi Minh City.

Job postings on Bolt’s LinkedIn early January reveal openings for two roles: operations specialist and customer support specialist. These hires appear to be part of the company’s preparations to launch its ride-hailing platform, though no official timeline has been disclosed for its market debut.

Although unfamiliar to most Vietnamese consumers, Bolt has carved out a dominant position in Europe, where it competes aggressively with Uber by leveraging a low-cost strategy and a youthful brand image. In addition to traditional ride-hailing services, Bolt has successfully capitalised on its ecosystem, offering e-scooter ride-hailing and rentals.

According to The Rakyat Post, Bolt entered the Southeast Asian market in 2020, launching operations in Thailand with a focus on key urban centres such as Bangkok, Phuket, and Chiang Mai. To establish its presence, the company implemented a competitive strategy, waiving commission fees for drivers and offering fares 20 per cent lower than its competitors.

In November 2024, Bolt expanded further into Malaysia, targeting Klang Valley and Kuala Lumpur. Upon launch, it introduced a fixed 15 per cent commission rate for drivers and initiated a promotional campaign with 50 per cent discounts on fares to pull in new users.

With more than a decade of operations, Bolt has emerged as one of Europe’s fastest-growing technology companies. It now operates in over 50 countries globally, providing a wide array of services, including ride-hailing, food delivery, grocery delivery, e-scooter rentals, and corporate mobility solutions.

On the other hand, a representative from Bolt clarified that while Vietnam is seen as an exciting market with significant potential, the company has yet to make a formal decision about entering the market.

"Bolt continuously explores potential markets for expansion and relies on in-depth analysis from our team of experts to ensure a successful launch in any new market. At present, our focus remains on growing our presence in Thailand and Malaysia," the representative shared with local media, quoted Dantri on January 10.

The departure of Indonesian ride-hailing and food delivery giant Gojek in 2024 marked a turning point, leaving the domestic players to gain ground.

According to Decision Lab’s The Connected Consumer report, Grab, while still the market leader, is steadily losing market share to home-grown competitors like Be and Xanh SM.

A study conducted by Q&Me in 2024 highlighted a narrowing gap between Grab and its rivals, driven by Be's growing user base and the rapid emergence of Xanh SM.

International research firm Mordor Intelligence identified Xanh SM as holding the second-largest market share in Vietnam’s ride-hailing sector, with The Connected Consumer report placing Xanh SM as the second most popular app, boasting over 32 per cent market penetration.

Customer satisfaction surveys further underscore this shift. A recent Q&Me poll revealed that 83 per cent of customers were satisfied with Xanh SM's electric vehicle service, surpassing Grab (80 per cent) and Be (68 per cent). Additionally, 84 per cent of users stated they would recommend Xanh SM’s electric taxis, while 77 per cent expressed similar sentiments about its electric motorbike services.

This evolving landscape can be traced back to strategic alliances, such as the 2023 partnership between VinFast GSM, a leading electric vehicle manufacturer, and Be Group. Industry analysts at the time described the collaboration as a mutually beneficial move to challenge foreign giants Grab and Gojek.

By 2024, Xanh SM had rapidly expanded its network across Vietnam, solidifying its presence and capturing consumer interest.

Vietnam’s ride-hailing market is also witnessing a broader generational and economic shift. As the country embraces a green economy and electric vehicle adoption rises, younger generations, particularly Gen Z, are prioritising sustainability over traditional cost-driven choices.

While Grab continues to appeal to price-sensitive users, Be has pivoted to offering premium experiences through services like beCar Plus and beBike Plus, targeting a more discerning, tech-savvy clientele.

An industry insider noted that the battle in Vietnam’s ride-hailing sector goes beyond attracting users.

"Platforms must not only win over and retain customers to sustain revenue but also focus on growing and retaining their driver networks," the source said.

Currently, Be leads with an estimated 400,000 drivers, followed by Grab with 300,000 and Xanh SM with 90,000.

Source: VIR