Phuong Trang Tourism Service and Transport JSC will invest VND2.2 trillion (USD100 million) to develop an app-based taxi service following Grab’s acquisition of Uber in Southeast Asia, including Vietnam.
Phuong Trang have invested in Vivu Technology Development JSC and renamed Vato. The brand is expected to be launched this month in Hanoi and HCM City.
The information was confirmed by Vivu Technology Development JSC founder Tran Thanh Nam. According to him, Uber’s withdrawal from the market is an opportunity for Vato to develop its business in Hanoi and HCM City.
Vato, which has around 2,000 cars, has fares of VND8,500 (36.8 US cents) per kilometre, equal to that of Grab. However, the commission rate for Vato drivers is just 20% compared to 25% applied to Grab drivers.
Nam added that just a day after the merger between Uber and Grab, the number of people who downloaded Vivu sharply increased.
Nguyen Tri Dung, general director of Phuong Trang Tourism Service and Transport JSC, said that Vato’s operation would help to improve his company’s taxi operations, which currently are facing losses.
Vato will offer Vato CAR, Vato Bike and Vato ship services.
The withdrawal of Uber from Vietnam has prompted many firms, including foreign operators, to eye a larger slice of the ride-hailing market.
Indonesia’s Go-Jek is recruiting staff for the Vietnamese market. Meanwhile, Mai Linh Group said that the number of drivers registered to use the company’s technology platform has surged since the Grab-Uber merger.
