Vietnam Taxi Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.5 Billion |
| Market Size (2029) | USD 0.96 Billion |
| CAGR (2024 - 2029) | 11.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Taxi Market Analysis
The Vietnam Taxi Market size is estimated at USD 0.5 billion in 2024, and is expected to reach USD 0.96 billion by 2029, growing at a CAGR of 11.80% during the forecast period (2024-2029).
In the medium term, passengers' preferences for taxi and ride-sharing services across the country are expected to increase. Hence, this is expected to lead companies to enhance the options and expand their operations to be provided in mobile applications to retain their respective market shares in a highly competitive market.
Internet penetration, the rise in living standards, and the emergence of local players are slowly shifting the landscape. During the forecast period, the rising demand and the market scenario are expected to be graphically different and favor on-demand transportation services.
Reduced taxi fares and ease of booking through mobile applications are the major factors that drove the modern taxi service to capture a major share of the Vietnamese taxi market. Moreover, vehicle booking through phone calling and hailing on the streets continues to be a major service among popular taxi firms like Mai Linh, Vinasun, Vinataxi, TaxiGroup, and Hoang Long. Thus, traditional taxi service has a major share of the Vietnamese taxi market.
Among cities in Vietnam, Hanoi is expected to grow at a faster rate owing to the launches of new ride-hailing services from companies like Grab, Fast Go, and Gojek, and such developments are anticipated to continue during the forecast period.
Vietnam Taxi Market Trends
Ride-hailing Services are Anticipated to Play a Key Role in the Market
The taxi industry has been one of the longest-running industries, contributing significantly to the world's economy. However, the rising demand for ride-hailing and taxi-sharing is replacing the conventional taxi market. Ride-hailing is anticipated to take over the conventional taxi during the forecast period. The increasing volume of transactions made through these digital platforms provided by the shared mobility service companies has been on an upward trend since its launch. The increasing motorbike sales in Vietnam and its penetration into the ride-hailing and taxi industries have enabled motorcycles to be the best compatible model of transport (at least for shorter distances), owing to their availability at half the fare of a taxi/ride-hailing car. The entry of app-based motorbike taxi services had predominantly captured the market share of the traditional motorbike taxi, popularly known as 'xe om' in the country.
Traditional taxi drivers are still present in the Vietnamese motorcycle taxi market, especially in tourist areas. The increasing entry of local and international companies into the app-based motorbike services, with unique promotional programs in the Vietnamese taxi market, is likely to further propel the demand for the app-based motorcycle ride-hailing market during the forecast period.
Online Booking is Expected to Gain Traction During the Forecast Period
Online booking is expected to dominate the Vietnam taxi market and witness major growth during the forecast period. The ease of booking through the app has significantly attracted customers to prefer online booking over offline booking, owing to the increasing usage of the internet and smartphones by people across the world.
Additionally, information, like tracking the driver position, pre-estimated ride fare, driver contact, and vehicle details available within an app in a short time, has further increased the customer preference for the online booking option.
Many major operators, like Grab, Uber, and Ola, provide ride-sharing options (which provide fare-splitting options among co-passengers) in their respective apps in certain regions, capturing the increasing demand for low taxi fare services among customers.
Operators have started adopting the same strategy and are trying to incorporate the ride-sharing option in their respective taxi app development to sustain the growing trend of ride-sharing services. For instance, in Vietnam, Mai Linh, one of the major taxi operators in the country, is trying to focus on providing ride-sharing services to overcome the country's mobility challenges, like traffic congestion and population. The company partnered with Kyyti Group to enable plans to launch a ride-sharing service in Vietnam.
Such active engagement of players in the market and their growing focus on widening the customer base through online booking mediums are expected to create a positive outlook for the market during the forecast period.
Vietnam Taxi Industry Overview
The Vietnamese taxi market is consolidated and led by globally and regionally established players. Companies are adopting strategies such as new product launches, collaborations, and mergers to sustain their market positions. Some of the major players in the market are Avis Budget Group, Mai Linh Group, Vina (Vietnam) Rent A Car, Grab Holdings Inc, and VN Rent a Car.
May 2023: Ahamove, the on-demand transportation application in Vietnam, launched a self-driving electric car rental service for tourists to Da Nang, with the addition of electric cars in its fleet like VinFast VF e2 and VinFast VF34.
Vietnam Taxi Market Leaders
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Avis Budget Group
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Mai Linh Group
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Vina(Vietnam) Rent A Car
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Grab Holdings Inc
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VN Rent a Car
*Disclaimer: Major Players sorted in no particular order
Vietnam Taxi Market News
- January 2024: Xanh SM, a new transportation brand launched in early 2023 focusing on sustainable growth, launched a short-term self-driving car rental service, Xanh SM Rentals, with electric car rental packages offering attractive price policies, and attracted more than 15 million customers after only 8 months of launch.
- April 2023: Green and Smart Mobility JSC (GSM) was established and launched in Vietnam as a multi-platform green transportation model. It operates with a fleet of 100% electric vehicles.
Vietnam Taxi Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rapid Urbanization and Demand for Convinient Transportation
4.2 Market Restraints
4.2.1 Traffic Congestion in Major Cities
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1 Booking Type
5.1.1 Offline
5.1.2 Online
5.2 Service Type
5.2.1 Ride-hailing
5.2.2 Ride-sharing
5.3 Vehicle Type
5.3.1 Motorcycles
5.3.2 Cars
5.3.3 Other Vehicle Types (Vans)
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Grab Holdings Inc.
6.2.2 Kyyti Group
6.2.3 FastGo
6.2.4 Gojek Tech
6.2.5 MVL Foundation Pte Ltd
6.2.6 Mai Linh Group
6.2.7 VINATAXI Co. Ltd
6.2.8 VINASUN TAXI Corp.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Taxi Booking Services
Vietnam Taxi Industry Segmentation
A taxi is a vehicle that can be hired for short-term purposes alongside the driver to transport people from one point to another. The Vietnamese taxi market report covers the latest trends, followed by technological developments in the market. The scope of the report covers segmentation based on booking type, service type, and vehicle type.
By booking type, the market is segmented into offline and online booking. By service type, the market is segmented into ride-hailing and ride-sharing. The market is segmented by vehicle type into motorcycles, cars, and other vehicle types (vans). For each segment, the market sizing and forecast have been done on the basis of value (USD).
| Booking Type | |
| Offline | |
| Online |
| Service Type | |
| Ride-hailing | |
| Ride-sharing |
| Vehicle Type | |
| Motorcycles | |
| Cars | |
| Other Vehicle Types (Vans) |
Vietnam Taxi Market Research FAQs
How big is the Vietnam Taxi Market?
The Vietnam Taxi Market size is expected to reach USD 0.5 billion in 2024 and grow at a CAGR of 11.80% to reach USD 0.96 billion by 2029.
What is the current Vietnam Taxi Market size?
In 2024, the Vietnam Taxi Market size is expected to reach USD 0.5 billion.
Who are the key players in Vietnam Taxi Market?
Avis Budget Group, Mai Linh Group, Vina(Vietnam) Rent A Car, Grab Holdings Inc and VN Rent a Car are the major companies operating in the Vietnam Taxi Market.
What years does this Vietnam Taxi Market cover, and what was the market size in 2023?
In 2023, the Vietnam Taxi Market size was estimated at USD 0.44 billion. The report covers the Vietnam Taxi Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Taxi Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Taxi Industry Report
Statistics for the 2024 Vietnam Taxi market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Taxi analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
