Technology-based ride-hailing services dominate the market, accounting for 82% of total market share[2]. This strong preference is largely driven by the simplicity and convenience of booking compared to the traditional type. Firstly, as of early 2025, Vietnam had around 80 million internet users, with an online penetration rate of 80%. Combined with the country’s 4G coverage reaching an impressive 99.8%, customers can easily book rides via mobile apps without the hassle of locating a traditional taxi[3]. Secondly, Vietnam’s public transportation system remains underdeveloped and insufficient to meet growing urban mobility needs. This gap makes ride-hailing services a highly attractive option due to their availability and responsiveness[4]. Lastly, technology-based ride services are often more affordable and supported by frequent and generous promotions. Discounts can reach up to 80%, especially for bike-hailing services, while traditional options tend to be priced at the discretion of individual drivers.

Ride fares of some ride-hailing brands in Vietnam in May 2025[5]

Source: B&Company Synthesis

Prospects and Challenges for Investors in the Market

Overall, the ride-hailing market is expected to continue its upward trajectory in the coming years, ultimately reaching 2.5 billion USD by 2029. Technology-based ride-hailing services are becoming increasingly popular, especially as companies launch more promotional programs targeting a wide range of customer segments. These efforts are making ride-hailing significantly more affordable compared to using personal vehicles[6].

– Xanh SM has launched a membership rewards program offering fare discounts for frequent users[7].

– Be is targeting students by offering up to 25% off rides that start or end at schools and universities in Hanoi[8].

– Grab has introduced a budget-friendly GrabBike package, Grab Economy, providing up to 20% off rides in select cities including Hanoi, Ho Chi Minh City, Da Nang, and others[9].

In addition, mobile wallets like MoMo, ZaloPay, and VNPay, which are widely used by younger consumers, have partnered with ride-hailing platforms to offer seamless, cashless payments. Other services such as parcel and food delivery are also becoming more common, contributing to an integrated ecosystem that caters to Vietnam’s fast-paced urban lifestyle and drives greater consumer engagement[10].

However, the ride-hailing market is becoming increasingly consolidated and dominated by major brands like Xanh SM and Grab. This trend makes it difficult for other brands to compete when entering the market. Moreover, Xanh SM is expanding its market presence by signing partnerships with two large competitors, Be[11] and Mai Linh[12], as well as the latest addition, Taxi G7[13].

Conclusion

The ride-hailing market in Vietnam presents a dynamic and rapidly evolving landscape. While opportunities still exist for innovation in service offerings, such as discounts for student groups or niche partnerships with local businesses, challenges remain, including fierce competition in major cities such as Hanoi and Ho Chi Minh City and market concentration in Xanh SM and Grab. Utilizing brands’ competitive strength and adapting to the evolving demands of consumers will assist companies in future success.

[1] Mordor Intelligence (2025). Ride – hailing Market in Vietnam Size & Share Analysis <Access>

[2] Mordor Intelligence (2025). Ride – hailing Market in Vietnam Size & Share Analysis <Access>

[3] Data Reportal (2025). Vietnam Digital Market in 2025 <Access>

[4] VnEconomy (2022). The Challenge of Increasing Public Transportation in Vietnam <Access>

[5] Fares are based on rates in Hanoi and Ho Chi Minh City; pricing in other provinces may differ.

[6] VnExpress (2024). Trending in Tech-based Ride-hailing Services Among Vietnamese <Access>

[7] Xanh SM (2024). Membership Rewards Program <Access>

[8] Be (2021). Student Discounts Program <Access>

[9] Grab (2024). Grab Introducing Budget Friendly Package <Access>

[10] VietnamBiz (2023). Ride-hailing Platforms Collaborate with E-wallet Systems <Access>

[11] Be (2023). Be Group and GSM Sign Cooperation Agreement <Access>

[12] Tien Phong Newspaper (2024). Mai Linh Taxi Cooperates with VinFast Car Company from GSM <Access>

[13] Xanh SM (2025). G7 Buys 899 Electric Cars from VinFast, Establishes Cooperation with the Green Ecosystem SM <Access>

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