Local firms invest strongly in technological motorbike taxi service

After Uber's withdrawal from Southeast Asia, including Vietnam, the race between local transport firms in using and developing technological motorbike taxi service is heating up.
A driver of Mai Linh Taxi  (Photo: Sggp)
A driver of Mai Linh Taxi (Photo: Sggp)
Technological motorbike taxi services have been launched by many taxi operators in the country, such as Thanh Cong, Taxi Group, Sao Thu Do in Hanoi, Mai Linh, Vinasun, Futa. The move increases competitiveness between taxi businesses and give customers more choices with reasonable prices.
Mai Linh Group launched its app-based motorbike taxi service, Mai Linh Bike, known as M.Bike, aiming at providing more options for app-based motorbike transport services and competing with Grab and Uber.
After several months of testing, Mai Linh Bike has gradually completed the process of operation and technology.
The company’s motorbike taxi service has attracted more than 10,000 motorbike drivers and expects to increase by about one million in 2020.
The price of the service costs VND11,000 (US$0.5) for the first two kilometers and VND3,700 for each subsequent kilometer. Prices will not rise during peak hours.
The taxi operator takes 12-15 percent of drivers’ earnings and provides insurance policies to its partners, depending on how long drivers have been joining and working.
Meanwhile Futa Bus Lines Phuong Trang Inc (Futa) launched its US$100-million project of car booking app on April 1.
At first, the company expected to provide the vehicle booking service, called VATO in May in Hanoi and Ho Chi Minh City. However, the firm offered the new service one month before the official launch date because of Uber-Grab merger. VATO offers an attractive price of VND8,000 per km and discounts up to 50 percent for passengers taking 3 trips in a day.
At the end of March, Uber Technologies Inc. has agreed to sell its Southeast Asian operations to regional-rival Grab. Under the agreement, Grab will take over all of Uber’s operations in Southeast Asia, including the food delivery service UberEats.

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