Vietnam’s ride-hailing market to reach US$2.16 billion by 2029

DNHN - The study also shows that Ho Chi Minh City is currently the largest ride-hailing market in Vietnam. Grab, Be, Gojek and Xanh SM are the “dominant” platforms in the digital ride-hailing market.

According to the Vietnam Ride Hailing 2024 industry research report recently published by market research firm Mordor Intelligence, the size of the Vietnamese ride-hailing market is estimated to reach US$0.88 billion in 2024 and is projected to reach US$2.16 billion by 2029, growing at a compound annual growth rate (CAGR) of 19.5% during the forecast period (2024-2029). This indicates that the market has excellent growth potential and room for expansion.

With Vietnam’s rapidly growing urban population, lack of public transport options and increasing traffic congestion, the demand for transportation methods has increased in recent years.

Consumers’ growing preference for using personal transport for travel due to the increasing need for convenient personal travel and the growing number of tourists in Vietnam are key factors driving the growth of the ride-hailing market.

The study also shows that Ho Chi Minh City is currently the largest ride-hailing market in Vietnam. Grab, Be, Gojek and Xanh SM are the “dominant” platforms in the digital ride-hailing market.

The report noted the very impressive growth figures for Xanh SM - the first all-electric taxi and transport brand in Vietnam.

According to Mordor Intelligence, the emergence of Xanh SM in 2023 has revolutionised the ride-hailing industry in Vietnam, changing the rankings and market share of service providers in the industry.

Specifically, Xanh SM rose to become the second largest market share in Q4/2023, just over 7 months after officially entering the market. In particular, Xanh SM’s market share is now twice that of its previous second-place rival, Be Group (18.17% compared to 9.21%).

Mordor Intelligence also noted that Xanh SM is leading in terms of the number of vehicles owned and the number of trips per day in the traditional taxi sector compared to units with self-employed fleets.

Compared to other units in both the traditional taxi sector and the ride-hailing sector, Xanh SM is rated highest for service quality, coverage, fleet size and customer satisfaction.

With such impressive growth, Xanh SM is being seen as a “TikTok Shop phenomenon in the ride-hailing sector”.

Ha Trang