Once upon a time, a foreign ride-hailing company entered the Vietnamese market and dominated the transportation industry. It faced stiff competition from a local start-up and eventually acquired it to strengthen its market position. However, the acquisition did not end the rivalry as new players emerged in the market, each vying for a slice of the pie.
Recently, a new electric vehicle (EV) challenger has entered the fray, promising to offer a green and affordable alternative to traditional ride-hailing services. The company, which goes by the name 'BE', has launched a fleet of EVs in Hanoi and plans to expand to other cities soon.
BE's entry into the market has reignited the ride-hailing wars in Vietnam, as existing players like Grab and Gojek are forced to adapt to the changing landscape. Grab, for instance, has partnered with a local EV company to offer electric motorbikes to its customers. Meanwhile, Gojek has acquired a minority stake in a Vietnamese fintech firm to diversify its services.
BE's unique selling proposition (USP) is its focus on sustainability and affordability. Its EVs are equipped with solar panels that can charge the batteries, reducing the overall operating costs. Moreover, the fares are lower than that of its competitors, making it an attractive option for price-sensitive customers.
Real-life examples of BE's impact can be seen in Hanoi. Trinh Thi Hue, a Grab driver, says that she has noticed a decline in the number of customers since BE's launch. "They (BE) are cheaper and have more EVs, so it's natural for people to choose them over us," she says.
However, not everyone is convinced of BE's potential. Nguyen Thu Quyen, a transportation expert, believes that BE's success hinges on its ability to scale up its operations quickly. "The ride-hailing market is highly competitive, and companies need a large fleet to meet the demand. BE needs to expand rapidly to stay in the game," she explains.
In conclusion, BE's entry into the ride-hailing industry in Vietnam has shaken things up and forced existing players to re-evaluate their strategies. The focus on sustainability and affordability has resonated with customers, leading to a decline in the market share of established players. However, BE's success depends on its ability to scale up and fend off competition from other newcomers. Only time will tell whether BE will emerge as the undisputed leader in the ride-hailing space in Vietnam.
Article Category: Transportation
Akash Mittal Tech Article
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