Vietnamese telco Viettel launches a ride-hailing app to challenge existing players

MyGo is part of Viettel’s delivery service provider, Viettel Post.

Vietnamese giant telco Viettel through its subsidiary Viettel Post is launching a new ride-hailing platform called MyGo, Vietnam News reports.

MyGo will be launched on July 1st, the company told media. It’s currently scouting for drivers to join the platform. MyGo offers ride-hailing services for cars and motorbikes, as well as on-demand parcel delivery.

The presence of MyGo will enliven the country’s ride-hailing market. With its growing economy, Vietnam is currently a hot market for the ride-hailing and food delivery industry as it has grown from USD 200 million in 2015 to USD 500 million in 2018. The market is expected to grow fourfold to USD 2 billion by 2025, according to a study by Google and Temasek.

MyGo will face competition with regional players like Grab and Go-Viet, the Vietnamese subsidiary of Indonesian Go-Jek, which entered the market in September 2018.

According to a survey about Vietnamese ride-sharing app trends by market research firm Q&Me, Grab is currently dominating the market but Go-Viet has been showing positive development as the brand is now recognized by over 60% of Vietnamese.

Another competitor is a local player FastGo. Founded in 2018 by Vietnamese NextTech Group, the firm is aiming to raise USD 50 million and has been expanding to neighboring countries like Myanmar and Singapore with a plan to enter Indonesia, Thailand, and the Philippines by the end of this year.

As part of MyGo’s strategy to stand out from the competition, it promised not to increase prices during peak hours. MyGo has a unique position as it’s backed by Viettel Post, which is one of the big postal and logistics service providers in Vietnam with nationwide coverage. Viettel Post has a large network of drivers and it also has its own e-wallet platform named ViettelPay that attracted over 2.5 million users within four months since its launch, according to Vietnam News.