Lalamove, the 24/7 on-demand delivery platform, has recently expanded its services to include passenger transportation in Ho Chi Minh City, offering both motorcycle and car options.
Since its entry into the Vietnamese market in 2017, Lalamove has been known for its delivery services. In their latest announcement, the company introduced a new ride-hailing feature, promising “affordable and transparent pricing for customers, including motorcycle, 4-seater, and 7-seater car options.”
The new service is now integrated into the existing Lalamove application, providing users with a seamless experience.
Mr. Nguyen Hai Dang, CEO of Lalamove Vietnam, shared that this expansion is aimed at meeting the growing demand for cost-effective transportation options and also improving the income of partner drivers.
Lalamove’s move is particularly noteworthy considering the competitive nature of Vietnam’s ride-hailing market, which has seen the exit of a major player, Gojek, after years of intense competition.
While the market is lucrative, it is also highly saturated with well-established players such as Grab, Be, Xanh, and TADA.
Even Grab, the Southeast Asian giant, is facing significant competition from newer entrants like Xanh SM, Be, and TADA. As a result, most participants in the market are operating at a loss.
Grab’s financial reports for Q2 2024 show a net loss of 68 million USD. For the first half of the year, their net loss stood at over 180 million USD, equivalent to more than 4.5 trillion VND.
Gojek, on the other hand, had accumulated losses of nearly 5.7 trillion VND over six years of operation in Vietnam up until the end of 2023.
Gojek’s exit, however, left a 17% market share up for grabs (as per the Q3 2024 report “The Connected Customer”). This presents an opportunity for new entrants like Lalamove to establish themselves in the market.
According to Mordor Intelligence, the Vietnamese ride-hailing market is estimated to reach a size of 1.05 billion USD by 2025 and is projected to grow to 2.56 billion USD by 2030, with a CAGR of 19.5% during the forecast period of 2025-2030.
This market growth is occurring amidst Vietnam’s rapid digital transformation, driven by urbanization and increasing technology adoption. In 2023, Vietnam had 77.93 million internet users, representing 79.1% of the population, and over 70 million social media users. The digital infrastructure has also seen significant development, with 162 million active mobile connections, equivalent to 164% of the population (according to GSMA Intelligence), an increase of 4.7 million (~3%) since 2022.
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