FastGo, Vietnam’s first ride-hailing service, has kicked off operations in Myanmar as part of its Southeast Asia expansion plans. Its joint venture with Myanmarese conglomerate Asia Sun Group began offering services on December 28. CEO Nguyen Huu Tuat said at the launch that Myanmar is a promising market with the e-commerce, travel and retail sectors all growing rapidly. With a population of 50 million, transport demand in the country is expected to rise, he said.
FastGo targets major cities and provinces and expects to sign up two million users and 100,000 drivers.
It pursues the same business model as in Vietnam, only taking a fixed service cost from drivers and not commissions on each ride and guaranteeing them higher fares during rush hour and bad weather.
It allows users to tip drivers, and offers a priority service for certain customers.
Tuat said FastGo has tied up with Asia Sun because the group has experience in various sectors, deep pockets and an understanding of the local market and culture.
He expected the venture to benefit Myanmar’s digital economy.
FastGo was launched in Vietnam last June and now has over 40,000 partner drivers in 10 provinces and cities.
It aims to be more than just a ride hailing app, offering other services such as food delivery.
FastGo Vietnam Joint Stock Company was established in April 2018 with its headquarters in Hanoi. The company belongs to a wide network of services provided by Nextech, a leading tech firm in Vietnam.
The Nikkei Asian Review reported that the company hopes to make its service available in 20 cities in Vietnam and five other Southeast Asian markets, including the Philippines, Cambodia and Thailand, by the end of 2019.