Budget Ride-Hailing App Challenges Dominance of Grab, Be, and Other Giants

A wave of new ride-hailing apps is emerging, fiercely competing to expand their market share, particularly in Ho Chi Minh City. This surge has revitalized the industry after a period of stagnation.

Tada is a prime example. Owned by MVL Foundation Pte. Ltd. (Singapore), the app entered Vietnam in 2019 but temporarily ceased operations due to inefficiency. In early 2024, Tada relaunched, focusing on Ho Chi Minh City. A turning point came in September 2024 when Gojek withdrew, providing Tada with an opportunity to grow its market share.

Another contender is Moovtek, owned by Moov Trading and Service JSC (100% Vietnamese capital), which launched in October 2025 with its signature purple branding. Moovtek chose Ho Chi Minh City as its starting point, offering both two-wheel and four-wheel ride-hailing services.

Ms. Nguyễn Thị Thanh Tuyền, representative of Moovtek, stated that the platform is applying competitive commission rates of 14% for motorcycles and 21% for cars, aiming to retain drivers and expand market share. This allows partners to earn higher incomes compared to the industry average. Drivers also receive additional benefits upon registration, such as free motorcycle insurance and uniform refunds if they complete a certain number of trips monthly.

Furthermore, Moovtek offers a fixed weekly bonus of up to 440,000 VND for motorcycle drivers and 600,000 VND for car drivers, along with flexible rewards during holidays. Peak-hour revenue is also factored in, boosting drivers’ earnings.

For customers, Moovtek adopts a competitive strategy by offering fares 10-20% lower than the market average. New customers enjoy discounts of 30-50%, while loyal customers receive flat-rate discount codes or weekly promotions.

A standout feature of Moovtek is its carpooling service, which saves customers up to 40% compared to standard ride-hailing services. “If no other passengers are found within 15 minutes, customers still enjoy a private ride without additional charges,” said Ms. Tuyền.

Meanwhile, Bship, an app by Butl Green Transportation Service JSC, takes a unique approach by using 100% electric vehicles. Beyond passenger transport, Bship has expanded into delivery services, food delivery, and even designated driver services for those who have consumed alcohol. Initially operating in the Mekong Delta, Bship has now expanded to the Central and Northern regions.

Competitive pricing is the main weapon of these newcomers. For an 8 km trip, Moovtek’s motorcycle fare is only around 45,000 VND, or just over 5,600 VND/km, significantly lower than the 51,000-60,000 VND (6,300 – 7,500 VND/km) charged by major players. Tada also maintains prices 15-20% lower than its larger competitors.

Ms. Lê Kim Huệ, a resident of Thạnh Mỹ Tây Ward (Ho Chi Minh City), shared, “I frequently use ride-hailing services, so I download and try every new app. Previously, established companies would arbitrarily raise prices during peak hours, which was frustrating. When I tried Tada, I found it cheaper by over ten thousand dong, though I sometimes had to wait a bit longer. However, they’ve recently improved significantly, with much faster pickup times.”

Even drivers now have more options to increase their income. Mr. Trương Văn Bình (Bình Tiên Ward, Ho Chi Minh City), who switched to Tada a few months ago, said, “Tada doesn’t charge any commission, so many drivers from other platforms have joined. For trips costing 50,000 or 100,000 VND, I keep almost the entire amount, losing only 5,000 – 8,000 VND to taxes and platform fees, which is half of what other apps charge.”