The exciting landscape of ride-hailing in Vietnam just got a little more dynamic. Lalamove, a Hong Kong-based logistics company, recently launched its ride-hailing services in Ho Chi Minh City, which are available for both motorbike and car rides (four- and seven-seaters) through the Lalamove app.
Nguyen Hai Dang, CEO of Lalamove Vietnam, expressed the company’s commitment to meeting consumer demand for more affordable travel options while simultaneously enhancing driver incomes. Although he remained tight-lipped about the fleet size, he did hint at plans to expand these services to other regions shortly.
Founded in Hong Kong in 2013, Lalamove has established a strong footprint across 14 markets, including Asia, Europe, and beyond. Since its entry into the Vietnamese market in 2017, the company has primarily focused on round-the-clock delivery services catering to both individuals and businesses, particularly in Ho Chi Minh City. Lalamove also boasts ride-hailing services in countries like Indonesia, Thailand, and the Philippines.
The growth potential in Vietnam’s ride-hailing and delivery markets is impressive. According to the “e-Conomy SEA 2024” report from Google, Temasek, and Bain & Company, the market is expected to soar from US$4 billion in 2024 to a whopping $9 billion by 2030. Furthermore, Mordor Intelligence predicts that the passenger transport market alone will grow from $1.05 billion this year to $2.56 billion by 2030.
The competitive landscape is rapidly evolving, with established players such as Grab, Xanh SM, be, and Tada jostling for market share. Xanh SM currently leads the ride-hailing segment with a commanding 39.85% market share, closely followed by Grab at 35.57%. As Mordor Intelligence points out, this growth can be attributed to factors such as rapid urbanization, the demand for convenient mobility solutions, and a tech-savvy younger generation, all amidst an influx of tourists in Vietnam.
Yet the competition is fierce. The Google report highlights how local companies are making significant strides, impacting even Gojek’s decision to exit Vietnam in September 2024. “Competition is expected to heat up, potentially transforming the industry and speeding up the transition to electric vehicles,” it notes.
Safety and affordability are vital in users’ service preferences, especially for motorbike rides, according to a survey by Q&Me, an online market research platform. Other factors that weigh in include respectful drivers, quick response times, ease of booking, and overall vehicle quality.
As Lalamove gears up to make waves in this vibrant market, the question arises: will it be smooth sailing or a bumpy ride ahead?
What services is Lalamove launching in Ho Chi Minh City?
Lalamove is introducing ride-hailing services for motorbikes and four- and seven-seat cars, available for booking via the Lalamove app.
What are the growth projections for Vietnam’s ride-hailing market?
The ride-hailing and delivery market in Vietnam is anticipated to grow from US$4 billion in 2024 to $9 billion by 2030, while the passenger transport market is expected to expand from $1.05 billion to $2.56 billion in the same timeframe.
Which companies are the major players in Vietnam’s ride-hailing market?
Key participants include Grab, Xanh SM, be, and Tada, with Xanh SM currently leading the market share, closely followed by Grab.
