Vinasun’s profit plummets by half

By Tat Dat October 27, 2023 | 05:27 am PT

A Vinasun taxi seen in Ho Chi Minh City. Photo by Shutterstock/StreetVJ

Taxi operator Vinasun saw its post-tax profit plunge 46% year-on-year to VND32.8 billion ($1.33 million) in the third quarter.

This was the fourth quarter in a row the company posted a profit decline.

The company explained that it had to spend more to support drivers, which reduced its profit margin.

Its revenue fell 12% to VND312 billion.

In the first nine months Vinasun’s profit fell 3% year-on-year to VND126 billion, while its revenue rose 23% to VND940 billion.

Vinasun is still the process of recovering from the Covid years, when it had to cut 2,500 jobs due to strict travel restrictions.

The company targets a profit of VND209 billion this year, the highest since 2017. It had completed 60% of the goal by the end of September.

Vinasun has seen the number of customers using its app to book rides surging, which helps it compete with ride-hailing companies which it has identified as major competitors.

The Ho Chi Minh City-based company plans to invest in 700 new cars this year to expand its fleet to 3,500.