Market Size of Vietnam Taxi Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.5 Billion |
| Market Size (2029) | USD 0.96 Billion |
| CAGR (2024 - 2029) | 11.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Taxi Market Analysis
The Vietnam Taxi Market size is estimated at USD 0.5 billion in 2024, and is expected to reach USD 0.96 billion by 2029, growing at a CAGR of 11.80% during the forecast period (2024-2029).
In the medium term, passengers' preferences for taxi and ride-sharing services across the country are expected to increase. Hence, this is expected to lead companies to enhance the options and expand their operations to be provided in mobile applications to retain their respective market shares in a highly competitive market.
Internet penetration, the rise in living standards, and the emergence of local players are slowly shifting the landscape. During the forecast period, the rising demand and the market scenario are expected to be graphically different and favor on-demand transportation services.
Reduced taxi fares and ease of booking through mobile applications are the major factors that drove the modern taxi service to capture a major share of the Vietnamese taxi market. Moreover, vehicle booking through phone calling and hailing on the streets continues to be a major service among popular taxi firms like Mai Linh, Vinasun, Vinataxi, TaxiGroup, and Hoang Long. Thus, traditional taxi service has a major share of the Vietnamese taxi market.
Among cities in Vietnam, Hanoi is expected to grow at a faster rate owing to the launches of new ride-hailing services from companies like Grab, Fast Go, and Gojek, and such developments are anticipated to continue during the forecast period.
Vietnam Taxi Industry Segmentation
A taxi is a vehicle that can be hired for short-term purposes alongside the driver to transport people from one point to another. The Vietnamese taxi market report covers the latest trends, followed by technological developments in the market. The scope of the report covers segmentation based on booking type, service type, and vehicle type.
By booking type, the market is segmented into offline and online booking. By service type, the market is segmented into ride-hailing and ride-sharing. The market is segmented by vehicle type into motorcycles, cars, and other vehicle types (vans). For each segment, the market sizing and forecast have been done on the basis of value (USD).
| Booking Type | |
| Offline | |
| Online |
| Service Type | |
| Ride-hailing | |
| Ride-sharing |
| Vehicle Type | |
| Motorcycles | |
| Cars | |
| Other Vehicle Types (Vans) |
Vietnam Taxi Market Size Summary
The Vietnamese taxi market is experiencing a transformative phase, driven by the increasing preference for on-demand transportation services and the rise of digital platforms. The market is characterized by a shift from traditional taxi services to ride-hailing and app-based solutions, which are gaining traction due to their convenience and cost-effectiveness. The proliferation of smartphones and internet access has facilitated this transition, with online booking becoming the dominant mode of service acquisition. Major players like Grab, Mai Linh, and Vinasun are adapting to these changes by enhancing their mobile applications and incorporating ride-sharing options to maintain their competitive edge. The entry of local and international companies into the market, coupled with innovative promotional strategies, is further propelling the growth of app-based services, including motorbike taxis, which offer a more affordable alternative for short-distance travel.
The market landscape is highly competitive, with key players engaging in aggressive strategies such as mergers, acquisitions, and the development of new services to capture market share. Traditional taxi services still hold a significant portion of the market, but the growing popularity of ride-hailing and shared mobility solutions is reshaping the industry dynamics. Cities like Hanoi are witnessing rapid growth in ride-hailing services, driven by the launch of new platforms and increased consumer demand. The introduction of electric vehicles, such as VinFast's VF 3, and the expansion of location-based services like GrabMaps are indicative of the industry's evolution and the ongoing efforts to meet the diverse needs of Vietnamese consumers. As the market continues to evolve, the focus on enhancing customer experience through technology and strategic partnerships is expected to shape the future of the Vietnamese taxi industry.
Vietnam Taxi Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Rapid Urbanization and Demand for Convinient Transportation
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1.2 Market Restraints
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1.2.1 Traffic Congestion in Major Cities
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD billion)
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2.1 Booking Type
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2.1.1 Offline
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2.1.2 Online
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2.2 Service Type
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2.2.1 Ride-hailing
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2.2.2 Ride-sharing
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2.3 Vehicle Type
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2.3.1 Motorcycles
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2.3.2 Cars
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2.3.3 Other Vehicle Types (Vans)
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Vietnam Taxi Market Size FAQs
How big is the Vietnam Taxi Market?
The Vietnam Taxi Market size is expected to reach USD 0.5 billion in 2024 and grow at a CAGR of 11.80% to reach USD 0.96 billion by 2029.
What is the current Vietnam Taxi Market size?
In 2024, the Vietnam Taxi Market size is expected to reach USD 0.5 billion.
