Grab and Xanh SM dominate Vietnam’s ride-hailing market: report

THE HANOI TIMES — Grab and Xanh SM dominate Vietnam’s ride-hailing market with a combined 87% share, according to a new survey by Japan-based research firm Rakuten Insight.

The survey, titled 2025 Ride-Hailing App Landscape in Vietnam, gathered responses from more than 7,400 users across five major cities. It shows Grab leading with a 55% usage rate in urban centers and 54% in other regions. Xanh SM, a rising domestic competitor, ranks second with a 32% nationwide share including 33% in major cities and 30% in surrounding areas.

Be, an early Vietnamese entrant to the market, accouned for 9%, followed by smaller players such as Mai Linh (2%), Vinasun (1%), and Maxim (1%).

Despite the dominance of Grab and Xanh SM, each service has carved out a unique customer base. Grab’s popularity stems from its wide network and user-friendly booking process, cited by 26% of users for availability and 17% for simplicity.

Xanh SM has built its reputation on comfort and cleanliness, with 16% of users highlighting its professional drivers and well-maintained vehicles as deciding factors.

Meanwhile, Be appeals to price-sensitive consumers. Twenty-four percent of respondents chose Be for its competitive fares, and 23% cited deep promotions. This positions Be as a value-driven alternative in a market where Grab and Xanh SM focus on service quality and coverage.

Urban Vietnamese spend over US$10 per month on ride-hailing services

The report noted that urban consumers in Hanoi and Ho Chi Minh City spend an average of VND252,000 ($9.7) per month on car-hailing services and VND105,000 ($4) on motorbike rides. This is about 15% higher than the average monthly spending of VND220,000 ($8.5) and VND95,000 ($3.7), respectively, in secondary cities such as Cantho, Haiphong, and Danang.

The data highlighted a clear disparity in consumer behavior, showing that residents of Vietnam’s largest cities prioritize convenience and are more willing to pay for ride-hailing services. Dense traffic, limited parking, and unpredictable weather have made personal vehicles less practical, providing a major opportunity for ride-hailing apps to deepen their market penetration.

While Grab and Xanh SM currently dominate the market, they face increasing pressure to maintain user loyalty. Factors such as rising fuel costs, driver policy changes, and shifting consumer preferences toward sustainable mobility are shaping competition in the sector.

The survey also revealed that 66% of respondents had used ride-hailing apps for cars, while 67% had booked motorbike rides.

Notably, 77% of users utilized these services at least three times a month, a consistent trend in major cities like Hanoi and Ho Chi Minh City, as well as in regional urban centers like Danang, Cantho, and Haiphong. “This data indicates widespread popularity of ride-hailing across Vietnam, reflecting a growing demand for convenient transportation solutions and the evolving landscape of urban mobility,” the report said.

Beyond basic transportation needs, ride-hailing services are widely used for social and lifestyle activities. About 42% of users rely on them to meet friends, 37% for dining out, 36% for shopping, and 33% for attending events. Daily commutes also play a significant role, with 32% using ride-hailing to get to work and 30% for returning home.

Vietnam’s ride-hailing market is projected to reach nearly $1 billion, according to Mordor Intelligence. The market could expand to US$2.5 billion by 2030, with a compound annual growth rate (CAGR) of 19.5% during the 2025-2030 period.

Meanwhile, Statista offers a more optimistic forecast, projecting the market will hit nearly $1.9 billion in 2025.