Vietnam Business Channel

17 domestic taxi companies create alliance to compete against Grab

Seventeen domestic taxi companies with operations across Vietnam have created an alliance so that they can compete against Grab, who has become the dominant player in the taxi ride-hailing business.

The new alliance will initially cover 40 cities and provinces in Vietnam and will have 12,000 vehicles registered into its “fleet” as it launches this week. It expects to expand to 63 provinces and cities, with 20,000+ vehicles, as other taxi companies join the alliance.

Consumers wanting to book a taxi from alliance members can use the EMDDI app, which has been developed by the Vietnam National University in Hanoi. The EMDDI app can be downloaded from the App Store and from the Play Store. Payments can be made using online payment platforms Momo, Viettel and VN Pay.

According to Le Vinh Quang, the deputy president of the taxi alliance, booking rides with alliance members through the EMDDI app is as easy as booking with Grab and will take only 1 ~ 2 minutes.

In order to compete against Grab and bring greater benefits to customers, Quang said that alliance taxis will not hike their fees during peak traffic times and that taxis can be booked in advance for customer convenience.

In Hanoi, six taxi companies have initially joined the alliance – Thanh Nga taxi, Van Xuan taxi, Thang Long taxi, Sao Mai taxi, Long Bien taxi and Que Lua taxi. There are two additional taxi firms in Hanoi that are expected to join – Open99 taxi and Vic taxi and when they join the alliance will have 4,000 cars in the capital city.

The alliance is still building out its network but as it launches this week it promises to be aggressive in adding more taxi firms into the group and to bring a “local” alternative to Grab into the market.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) said it was important for taxi firms to use advanced technologies and improve service quality to better serve passengers. Vu also said that he was glad to see the technology behind the EMDDI app was developed by a Vietnamese university and that he hopes the success of the app will showcase Vietnamese technology to a global market.