Yet another ride-hailing firm enters Vietnam market

The latest entrant to a market dominated by the likes of Grab and Go Viet has set an ambitious target of partnering with 10,000 drivers in a few weeks, by the end of 2018, and 100,000 drivers next year.

Unlike the current ride-hailing firms, Be Group has registers its service as a transportation business.

"We have gathered a lot of talent, and I personally have experience running start-ups for many years. With thousands of billions of dong ($1= VND23,287) mobilised, we are confident our platform can compete in this fierce market," Be Group CEO Tran Thanh Hai said at the launch.

Be Group apps will start operating in Hanoi and Ho Chi Minh City from December 17. The company has announced an initial 25-percent royalty for beBike and beCar drivers, while specific prices and discount schemes for customers have not been revealed.

Be Group hopes to become a big player like Grab or Go Viet with a comprehensive super-app. In 2019, the company plans to roll out delivery and payment services. It aims to attract tens of millions of users in the next three years.

Vietnam’s ride-hailing market has seen new entrants after Uber’s departure early this year, including Vietnamese firm FastGo, GoViet - a subsidiary of Indonesia’s Go-Jek, Aber and the latest Be Group.

Grab, which counts Chinese ride-hailing firm Didi Chuxing and Japan’s SoftBank Group Corp among its backers, had 175,000 drivers and bikers in Vietnam as of September and is the most prominent player in Vietnam after it pushed out Uber, according to Reuters.

Rival GoJek entered Vietnam in August eyeing to grab a share of the fast-growing market. Vietnam has 95 million people and many use smartphones.

A number of local taxi companies in Vietnam have come together to compete against ride-hailing firms, while Grab has been in a legal battle for more than a year with local taxi firm Vinasun Corp.