Vietnam’s ride-hailing scene is set to soar to new heights, with experts projecting it to hit a whopping US$2.16 billion mark by 2029, as revealed by the latest report from Mordor Intelligence, a market research and consulting firm that provides in-depth analysis and insights into various industries and markets worldwide.
This growth trajectory is fueled by a surge in new services and investments within the ride-hailing sector. The report forecasts an impressive compound annual growth rate (CAGR) of 19.5% from 2024 to 2029, painting a picture of thriving potential in the market.
Currently valued at US$880 million, the Vietnamese ride-hailing landscape is experiencing rapid expansion, with projections suggesting it could double in size within the next 4-5 years.
Key drivers of this growth include Vietnam’s burgeoning urban population, increasing disposable incomes, and a growing appetite for convenient transportation options, particularly among city dwellers and young professionals.
The widespread adoption of smartphones and internet connectivity, coupled with Vietnam’s youthful demographic, has further catalyzed the rise of tech-enabled ride-hailing services across the country.
Recognizing the immense opportunities at hand, industry players are doubling down on innovation and expansion efforts. This includes diversifying into delivery and digital financial services, as well as exploring new market segments.
At present, Ho Chi Minh City leads the charge as Vietnam’s largest ride-hailing market. Platforms like Grab, Be, Gojek, and Xanh SM, backed by Vingroup, dominate the digital landscape, offering a wide array of services to consumers.
Highlighting Xanh SM’s remarkable ascent since its inception in 2023, the company swiftly clinched the second-largest market share in just seven months.
Currently, Xanh SM boasts twice the market share of its closest competitor, Be Group, and has emerged as the leader in the traditional taxi sector.
Meanwhile, Grab maintains its stronghold as the top player, commanding nearly 60% of the market share.
Industry insiders highlight a flurry of activity in Vietnam’s ride-hailing space, with companies actively expanding their service offerings and geographic footprint. For instance, Xanh SM recently expanded its electric taxi service to Savannakhet Province in Laos, underscoring its commitment to sustainability and eco-friendly transportation.
Similarly, Mai Linh Corporation has extended its services in key cities like Hanoi, Danang, and Dong Nai, reinforcing its position in the market.
In a bid to capture new territories, Gojek has announced its foray into neighboring provinces, signaling its intent to tap into adjacent markets.
Looking ahead, Statista projects robust growth for Vietnam’s ride-hailing and taxi segment, with revenues expected to soar to $4.63 billion by 2027.