The Road Less Traveled: VNPAY Taxi’s Vision to Redraw the Tech-Taxi Landscape

Solving the “Chicken or the Egg” Dilemma in the Ride-Hailing Industry

The Vietnamese ride-hailing market is often likened to the e-commerce industry: incredibly attractive yet fiercely competitive. With a population of 100 million and an internet penetration rate of 79.1% as of early 2024, Vietnam has become a market that no ride-hailing company can afford to ignore.

However, surviving in this market for the long term is a daunting challenge. Even foreign companies like Uber had to exit Vietnam in 2018, unable to compete with Grab. Local brands like Vato and Fastgo suffered similar fates.

Subsequently, some traditional taxi companies ventured into developing their own apps, but they faced the same issues: low download numbers and a lack of active users, who preferred hailing cabs directly on the street or booking by phone.

An industry insider once revealed the Catch-22 situation that these new ride-hailing apps faced: fewer passengers lead to fewer drivers, and a shortage of drivers affects the passenger experience, driving passengers away. This vicious cycle makes it difficult for new apps to gain traction, and many have had to withdraw within a few months or years.

When VNPAY Taxi entered the market, skepticism about its ability to survive was understandable. As a ride-hailing platform integrated into the VNPAY banking app and wallet, could it compete in this intense market? However, VNPAY Taxi has proven its resilience by introducing a new approach to an old game.

Illustrative image

Instead of directly recruiting drivers like Grab, Xanh, or Be, VNPAY Taxi chose to partner with numerous traditional taxi companies to rapidly expand its coverage and operate in multiple localities, not just a few major cities. By collaborating with over 200 traditional taxi companies and two ride-hailing brands, Be and Xanh, VNPAY Taxi improved the user experience by reducing wait times.

On the user side, VNPAY Taxi is integrated into various banking apps such as VCB Digibank, BIDV SmartBanking, Agribank E-Mobile Banking, VietinBank iPay Mobile, HDBank, and the VNPAY wallet, giving it instant access to over 40 million potential customers accustomed to transacting on their phones.

A Three-Pronged Strategy for Longevity

According to Mordor Intelligence, the ride-hailing market in 2023 was valued at 727.73 million USD, estimated to reach 880 million USD in 2024, and projected to grow to 2.16 billion USD by 2029. This continuous growth compels brands to devise strategies to attract customers in the short term and maintain their market position in the long term.

Illustrative image

VNPAY Taxi has consistently offered attractive promotions to lure customers. In recent months, users have been treated to a range of discounts and deals, including fixed fares of 30,000 VND ($1.28) on Tuesdays for rides between 30,000 VND and 60,000 VND; 50% discounts of up to 50,000 VND per ride for new customers on their first three trips; nine months and ten days of exclusive benefits for expectant mothers; and referral bonuses.

Of course, VNPAY Taxi understands that relying solely on promotions is unsustainable, as customers attracted by discounts can just as easily be lured away by competitors’ offers. Thus, while maintaining its enticing promotions, the brand has also implemented an omnichannel marketing strategy, including prime-time TV ads, social media campaigns, and outdoor advertising, to establish its presence in customers’ minds.

Many users still recall VNPAY Taxi’s impressive outdoor advertising campaign across Hanoi in early April. Breaking free from traditional norms, the brand’s outdoor ads were simple yet impactful, focusing on the core benefit of helping users save on transportation costs.

VNPAY Taxi’s outdoor advertising campaign in Hanoi

To create a unique brand identity, VNPAY Taxi introduced its mascot, the “VNPAY Taxi Boss,” a bear wearing the brand’s signature red and blue colors.

The mascot not only appeared in advertisements but also popped up everywhere from north to south, helping users book rides and spreading a sense of joy and positivity.

VNPAY Taxi’s mascot, the “VNPAY Taxi Boss”

The cheerful and dynamic design of the mascot reflects the positive energy the brand aims to convey to customers during each ride.

VNPAY Taxi’s cheerful and dynamic mascot

While promotional policies and omnichannel marketing form two of the three pillars of VNPAY Taxi’s strategy to attract and impress customers, the third pillar, which ensures its long-term advantage, is its focus on enhancing the user experience.

In 2023, VNPAY Taxi was recognized as one of the Top 50 Trusted Products and Services in Vietnam in the technology category. More recently, it was honored as one of the Top 10 Outstanding Sao Khue Products in 2024.

VNPAY Taxi recognized as one of the Top 10 Outstanding Sao Khue Products in 2024

While it is too early to predict VNPAY Taxi’s future, the brand’s achievements thus far have given consumers another reliable option for ride-hailing and raised hopes for a Vietnamese brand to make a significant impact, perhaps even reshaping the landscape of the country’s ride-hailing industry.