Hanoi (VNS/VNA) - Vietnam’s ride-hailing market value isestimated at 880 million USD in 2024 and expected to reach 21.6 billion USD by2029, growing at a compound annual growth rate of 19.5% during the forecastperiod, according to a recent report by India-based market research firm MordorIntelligence.

With Vietnam’s rapidly growing urban population, the lack ofpublic transport options, and increasing traffic congestion, the demandfor private modes of transportation has gone up in recent years.

Consumers’ increasing preference toward availing privatetransportation for traveling purposes owing to the rising need for conveniencein personal mobility and the growing number of tourists in Vietnam are majordeterminants for the growth of the ride-hailing market in Vietnam, the reportwrote.

The rise in travel and tourism and the emergence of a young andtech-savvy population have further fuelled the adoption of ride-hailingservices.

Passenger cars will continue to be the largest segment becausethey offer a comfortable and personalized mode of transportation, catering tothe preferences of Vietnamese consumers led by the growing urban population andincreasing disposable incomes.

The growing urban population and increasing disposable incomeshave led to a rise in demand for convenient transportation options,particularly among urban commuters and young professionals.

Citing statistics that Vietnam’s internet coverage reached nearly80% in 2023, the increasing penetration of smartphones and mobile apps aids consumersin accessing ride-hailing services and booking passenger cars on the go.

The report found that Ho Chi Minh City was the largest market forride-hailing in Vietnam.

The Vietnamese Government is also encouraging the adoption ofelectric vehicles, which is a pivotal measure to combat transport challenges.

The government also aims to reduce greenhouse gas emissions,alleviate traffic congestion, and improve overall urban living conditions.

These efforts will create a conducive environment for expandingride-hailing services in the city, the report said.

Xanh SM, the first-ever totally electric taxi company in Vietnam,has been aggressively expanding its market foothold through its strongpartnership growth with several taxi firms across the country including Lado Taxi,Son Nam, Thanh Ha Transport, ASV Airport Taxi, En Vang and Taxi Xanh Sapa.

According to Mordor Intelligence, the Vietnamese ride-hailingmarket is moderately consolidated, with players like Grab Holdings, Xanh SM, BeGroup, Go-Viet and FastGo.

Xanh SM, Grab and Gojek are also emerging as dominant players inthe digital side of Vietnam’s ride-hailing market./.