Seven taxi firms of Vietnam have developed their own car hailing applications (Photo: techz.vn) Hanoi (VNA) - The transportationmarket of Vietnam is witnessing significant changes since the rapid expansionof ride hailing apps Uber and Grab in recent years.
Uber and Grab have made competition stiffer than ever, forcing traditional taxifirms suffering from a decline in market share to make technology-driveninnovations.
Seven taxi firms of Vietnam have developed their own car hailing applications,besides Uber and Grab, under a Government approved pilot project to applyscience and technology in passenger transportation, which were now available onAppStore and Play Store.
What’s significant is that car hailing apps of taxi firms do not increase faresduring rush hours.
According to Nguyen Van Thanh, president of the Auto Transport Association, the4.0 industrial era is approaching and it is, therefore, vital to encouragetransportation firms to apply advanced technologies.
“The market will certainly witness positive developments. However, it isof significant importance that management policies ensure healthy competitionto benefit both providers and passengers.”
“As a matter of course, the competition will be fierce in both passenger andgoods transportation,” Thanh said.
Thanh added that supply exceeded demand, to some extent, raising a pressingquestion about appropriate management policies amidst a rapid increase in carseven as transport infrastructure was severely overloaded in large cities.
Thanh cited statistics of the Vietnam Register, according to which the numberof cars reached 200,000 in July.
Recently, taxi firm Vinasun proposed that Grab and Uber should be managed astaxi firms in Vietnam.
New player
Viettel telecom recently signed a comprehensive strategic cooperation agreementwith Vietnamese transportation startup Gonow.
Accordingly, Viettel will provide Gonow with support in developing websites,sales network, customer care system and payment services. In addition, Viettelwill hold 30 percent stake in Gonow.
Founded one year ago, Gonow is a platform which connects drivers or car ownerswith customers to provide passenger and goods transportation services, as wellas car leasing.
Gonow currently operates in 64 provinces and cities nationwide and plans toexpand to international markets from the end of 2018.
At present, the platform has more than 170,000 members, a whopping rise fromjust 3,500 in the first quarter of this year. - VNA
VNA
