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​Whitepaper points out why Vietnamese love and hate ride-hailing apps

Wednesday, October 17, 2018, 08:00 GMT+7
​Whitepaper points out why Vietnamese love and hate ride-hailing apps
A ComfortDelgro taxi passes Uber and Grab offices in Singapore March 26, 2018. Photo: Reuters

Most Vietnamese consumers have embraced ride-hailing apps, and those who have not have quite surprising reasons not to do so, the Ministry of Industry and Trade said in the newly released 2018 Whitepaper on Vietnam E-commerce.

The report, conducted by the Vietnam E-commerce and Digital Economy Agency (iDEA), dedicates a section to analyzing the community's readiness when participating in a sharing economy - an economic model where peer-to-peer exchange is facilitated via community-based online services such as ride-hailing apps.

A whitepaper is an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing body's philosophy on the matter.

Graphic: Tuoi Tre News
Graphic: Tuoi Tre News

The iDEA asked 1,000 individuals nationwide for their opinions on ride-booking apps via hand filling surveys.

Eighty-one percent of the respondents, or 810 people, had at least one ride-hailing app installed on their smartphones, while 19 percent, or 190 individuals, had never used the service, according to the survey results.

Among the ride-hailing users, 60 percent commented that booking rides via an app was fast and convenient, while 33 percent rated the service as cheap, and seven percent chose the service out of safety reasons, as driver information is clearly declared in the app.

Graphic: Tuoi Tre News
Graphic: Tuoi Tre News

On the other hand, 58 percent of the 190 respondents who had never gone on a ride booked via their smartphone pointed to safety as the primary factor that holds them back from using the service. The report did not clarify what the safety concern was about - whether it is unsafe to travel with strangers or to provide personal information to the app.

Another 25 percent of these respondents thought that the rate of the ride-hailing service was unreasonable, whereas 18 percent said the payment method was not suitable for them.

Respondents were allowed to choose more than one answer to explain why they are not keen on ride-hailing apps.

Graphic: Tuoi Tre News
Graphic: Tuoi Tre News

Vietnam’s ride-hailing market is attracting newcomers to compete with Grab after the company`s acquisition of Uber’s Southeast Asia operations in April.

According to experts, local companies such as FastGo developed by a Vietnamese start-up under NextTech Group – a group of companies involved in e-commerce, e-logistics, and fintech – and VATO, which claims to have received US$100 million from bus operator Phuong Trang, look promising to fill the void left by Uber while providing diverse options for passengers.

However, the fierce competition is seemingly a game between Southeast Asia's leading ride-hailing service Grab and its Indonesian rival Go-Jek, as the latter is now present in Vietnam's two major cities of Ho Chi Minh and Hanoi under the brand Go-Viet.

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Bao Anh / Tuoi Tre News

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