The taxi business in Vietnam is undergoing a transformation in 2024, boosted by growing cities. The taxi services market is anticipated to increase its market share in the coming years, with a blend of traditional taxis and app-based platforms shaping the future of transportation in Vietnam.
Factors Contributing to the Growth of Vietnam's Taxi Sector in 2024
Various factors are pushing the growth of Vietnam's ride-hailing sector. Urban growth is a key factor. With increased urbanization, the reliance on convenient transportation options rises, making the taxi industry a vital part of urban living.
Apart from urban expansion, smartphone penetration is revolutionizing the taxi industry. Digital ride services like Grab and Gojek have revolutionized the approach to getting rides in Vietnam, allowing for real-time tracking.
The Competition Between Conventional Taxis and Ride-Hailing Platforms
Despite the rise of ride-hailing apps, legacy taxi firms like Vinasun and Mai Linh remain competitive. Older taxi services are incorporating digital features by offering app-based booking.
The pressure comes from the cost-effectiveness and seamless services offered by digital platforms like Grab and Gojek. The ride-hailing providers continue to attract customers due to their convenience.
Motorbike Taxis: A Crucial Segment of the Taxi Industry
Motorbike ride-hailing services are a major segment of the transportation industry in Vietnam, particularly in traffic-heavy cities. Services such as GrabBike and Gojek make short-distance travel quicker and cheaper.
With motorcycles being able to maneuver through traffic, they are widely used in crowded areas.
What Lies Ahead for the Vietnamese Taxi Industry
As the market evolves, Vietnam's urban mobility market will likely keep expanding, powered by ongoing digital transformation and urban growth.
Environmental sustainability efforts could transform the future of urban mobility. As sustainable taxis become mainstream, sustainability will become a key focus.