Smartphone-based taxi booking services such as Uber and GrabTaxi are booming in Vietnam. These taxi services may replace private car ownership in Vietnam completely.
The population of tech-savvy people is increasing in Vietnam. The number of smartphones is also increasing in the Southeast Asian country and many people are taking advantage of ride-sharing apps such as Uber and GrabTaxi.
Uber launched its services in Vietnam in 2014 and it has already witnessed a high growth rate in the country. Hanoi and Ho Chi Minh City already have the highest average number of trips per user out of the 300 cities where the taxi services operate.
"Vietnam has proven to be one of the fastest growing markets for Uber globally; a testament to the overwhelming support we've received from Vietnamese riders and partner drivers alike since we launched in this market over 6 months ago," as per Uber.
Many customers have also applauded the Uber and GrabTaxi apps in Vietnam.
"This application is incredible. It's easy to use, it gives you the idea who and where your driver is at, it will also save you the time from falling in line at taxi lines at malls or any other places where there is a lot of people," noted a user on the App Store. "So far, this application has lived up to my standard, and the recent update was really helpful."
Only about three in 100 people own a private car in Vietnam. The popularity of ride-sharing apps is increasing in the country as many people cannot afford the comfort of private cars. Using traditional taxi is also relatively expensive for many commuters.
A major chunk of the Vietnamese population is less than 30 years old. Nguyen Tuan Anh, the general manager of GrabTaxi in Vietnam, says that this population group wants to try new things, which is another reason why services from Uber and GrabTaxi are witnessing a growth in Vietnam.
However, many young people still dream of owning a car. Tuan Anh says that if ride-sharing is convenient and surpasses the requirement of a private car then this population group may also be inclined to use the services instead.
Uber and GrabTaxi may soon face stiff competition from local taxi operators as some of them are on the verge of launching a smartphone app for customers. The local taxi operators are also tailoring the services offered to cater to the Vietnamese market.
It remains to be seen if smartphone-based taxi booking services will completely replace private car ownership in Vietnam.
