Vietnam is considered an ideal destination for investing in motorcycle ride-hailing services as it has a population of 90 million and 45 million registered motorcycles. Besides, operating expenses in Vietnam are cheaper than in markets like Singapore and Malaysia.
Last year, Go-Jek opined that Vietnam will be the company’s second destination in Southeast Asia, following the Philippines, and its third overseas market in Asia.
According to Go-Jek, investing in Vietnam will open up opportunities for it to develop the Go-Pay payment application.
Established in 2010 as a phone-based motorcycle ride-hailing service, Go-Jek has evolved into an on-demand mobile platform and a cutting-edge app, providing a wide range of services that includes transportation, logistics, mobile payments, food delivery, and many other on-demand services. Go-Jek is valued at $5 billion.
Entering Vietnam, Go-Jek will have to compete with heavyweight competitors like GrabBike and UberMotor. In late September 2017, Mai Linh Mien Bac, a major taxi company in Vietnam owned by Mai Linh Group, officially launched its motorbike transport services called M.Bike and M.Bike Premium to compete with uberMoto and GrabBike.