According to a report by Singapore-based venture capital firm Momentum Works, Vietnam’s online food delivery market grew by 26%, from $1.4 billion in 2023 to $1.8 billion last year. GrabFood and ShopeeFood currently dominate with approximately 95% market share, while beFood and other smaller platforms struggle to gain a foothold.
In June, the market welcomed a new player, Xanh SM Ngon. The company announced partnerships with over 2,000 food establishments meeting food safety standards, focusing on delivery quality and user experience. Instead of competing with promotions, they offer lower discounts (around 17%) and utilize their familiar electric vehicle fleet from the Xanh SM ecosystem.
After a few months, the sight of Xanh SM electric vehicles queuing outside popular restaurants has become common in Ho Chi Minh City (HCMC). A Xanh SM driver waiting for an order at a café mentioned that order volume is steadily increasing, with earnings now comparable to passenger rides. “The app is new, and there aren’t many restaurants yet, but the company’s low discount rate allows us to work alongside Grab,” he said.
During a sunny Saigon noon, a group of Xanh SM drivers take a break while waiting for orders. They believe the electric vehicle model helps reduce costs, but restaurant coverage remains a challenge. “It’s decent, but to compete, more major restaurants need to join,” one driver shared.
Meanwhile, Grab and Shopee Food drivers remain the majority. During peak hours, a restaurant is crowded with drivers waiting for orders. “There are too many promotions, and the restaurant can’t keep up,” one driver commented.
Most ShopeeFood drivers report that the platform maintains its appeal through deep discounts, free delivery, and strong integration with its e-commerce ecosystem. However, some drivers note inconsistent earnings, especially when orders are canceled or restaurants are overwhelmed.
Meanwhile, Grab maintains a strong presence. At many HCMC restaurants, the green uniforms of Grab drivers dominate as they wait for orders.
Dong, a 21-year-old Grab Food driver, shared while waiting for an order: “This app distributes orders evenly; as long as you’re diligent, you can earn well.”
Despite holding only about 4% market share in 2024, beFood drivers persist in the fierce competition. Thong (50 years old) shared: “beFood focuses on improving driver and customer experiences rather than competing with promotions.”
Overall, many drivers report that GrabFood and ShopeeFood retain them due to consistent order volumes, despite high discount rates (25-30% per order, with some reaching nearly 50%). Xanh SM Ngon takes a different approach: prioritizing stability and actual driver income, aiming for a sustainable, eco-friendly delivery model less dependent on promotions.
According to Momentum Works, Vietnamese consumers increasingly prefer ordering pre-cooked meals through apps for convenience and promotions, ensuring continued growth in the food delivery market.
However, competition remains fierce after Beamin and Gojek exited the market. Remaining companies must compete through discount programs, service upgrades, and enhanced entertainment features.
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