The Vietnam taxi market was approximately USD 0.50 Billion in 2024. The market is assessed to grow at a CAGR of 7.00% between 2025 and 2034, reaching a value of USD 0.98 Billion by 2034.
Taxi operating firms in Vietnam have adopted app booking due to increasing digitalisation in the country, supporting market growth. The convenience offered through these booking services along with the option of pre-booking is boosting their popularity in Vietnam.
Multimodal transportation companies like Uber in Vietnam have announced plans for lateral expansion into other services like food delivery, parcel shipment, and shopping services. This is because of their conviction to provide services that meet the evolving consumer requirements. This is one of the key market trends shaping the market dynamics.
Standard taxi providers such as Mai Linh are planning to update their fleet to compete with the EV taxis as well as the taxis with the provision of digital ride-sharing apps. As of 2024 reports, the company aims to purchase around 10,000 new taxis in the next three years, which can contribute to the Vietnam taxi industry revenue. Over 2000 of these taxis are expected to be deployed in major regions such as Hanoi and Ho Chi Minh City.
As per the industry reports, the GSM electric taxi service, which was established in April 2023, has served around 50 million customers in a year. This taxi service solely comprises electric cars and motorbikes, amid the rising environmental impact of the standard fuel-based taxis. The company recently established a Xanh SM Platform, which offers a digital platform for ride-sharing services to customers, boosting the growth of the Vietnam taxi industry.
Meanwhile, ride-sharing is expected to increase in popularity over the forecast period due to increasing traffic and congestion in urban cities in Vietnam. Rising environmental consciousness among consumers is further expected to boost the popularity of ride-sharing services.
Other major players in the Vietnamese taxi market include Go Viet Technology Trading Joint Stock Company, FASTGO Vietnam Joint Stock Company, Mai Linh Group, Anh Duong Vietnam Joint Stock Company (Vinasun Corp.), Be Group JSC, VATO.EC, and Thien Phong Trading Co., Ltd., among others.
Vietnam Taxi Market Growth
Taxis have become an inseparable part of the urban landscape, a majority of the population uses them to reach the nearest airport, gas station, or hospital. The different types of taxi services available include ridesharing and ride-hailing. Ridesharing allows you to share the travelling vehicle with other travellers, reducing fairs and carbon emissions. Ride-hailing eliminates the hassle of looking for parking spaces and provides travellers with a convenient travelling experience, which can boost the growth of the Vietnam taxi market.Taxi operating firms in Vietnam have adopted app booking due to increasing digitalisation in the country, supporting market growth. The convenience offered through these booking services along with the option of pre-booking is boosting their popularity in Vietnam.
Vietnam Taxi Market Trends
Traditional taxi services have no waiting period in Vietnam. This facilitates consumers in taking rides quickly. It also helps them in reaching destinations with poor route optimisation on Google Maps quickly by relying on the experiences and knowledge of local drivers who are more familiar with routes and shortcuts of the city, thus, boosting the taxi demand in Vietnam.Multimodal transportation companies like Uber in Vietnam have announced plans for lateral expansion into other services like food delivery, parcel shipment, and shopping services. This is because of their conviction to provide services that meet the evolving consumer requirements. This is one of the key market trends shaping the market dynamics.
Recent Developments
As per the Vietnam taxi market analysis, electric taxis under Green and Smart Mobility (GSM) were expected to debut on the streets of Vietnam in 2023. The company intends to launch its taxis in 5 locations in the country starting with 600 taxis in the Hanoi region.Industry Outlook
As per the Vietnam taxi industry analysis, the key market players in the country are updating their fleet as well as introducing EV and hybrid-based taxis to gain a competitive reach. For instance, Vinasun company invested around USD 24.9 to USD 25.7 million in the deployment of 800 hybrid taxis. This new taxi range is mostly comprised of Toyota Yaris and Innova models and is expected to maintain the same fare rate as its previous models. The firm also plans to purchase 2000 more hybrid models in 2025 to enhance its market reach.Standard taxi providers such as Mai Linh are planning to update their fleet to compete with the EV taxis as well as the taxis with the provision of digital ride-sharing apps. As of 2024 reports, the company aims to purchase around 10,000 new taxis in the next three years, which can contribute to the Vietnam taxi industry revenue. Over 2000 of these taxis are expected to be deployed in major regions such as Hanoi and Ho Chi Minh City.
As per the industry reports, the GSM electric taxi service, which was established in April 2023, has served around 50 million customers in a year. This taxi service solely comprises electric cars and motorbikes, amid the rising environmental impact of the standard fuel-based taxis. The company recently established a Xanh SM Platform, which offers a digital platform for ride-sharing services to customers, boosting the growth of the Vietnam taxi industry.
The Growth of the Market Driven by Urbanization and Tourism Industry
- Urbanization and Economic Growth: Rapid urbanization and economic development in Vietnam led to increased demand for transportation services, including taxis.
- Tourism Industry: Vietnam's growing tourism industry boosts demand for reliable and convenient taxi services for tourists and business travellers and aids Vietnam taxi demand growth.
- Smartphone Penetration: High smartphone penetration facilitates the use of app-based ride-hailing services, driving growth in the taxi market.
- Government Initiatives: Supportive government policies and infrastructure investments enhance transportation networks and encourage taxi market growth.
Challenges Impacting the Growth of the Market Include Regulatory Environment and Traffic Congestion
- Regulatory Environment: Navigating the complex regulatory environment, including licensing and compliance requirements, can be challenging for taxi operators and negatively influence Vietnam taxi demand forecast.
- Traffic Congestion: Severe traffic congestion in major cities can lead to longer travel times, affecting the efficiency and profitability of taxi services.
- Competition from Ride-Hailing Apps: Intense competition from ride-hailing platforms like Grab and Gojek poses a significant challenge to traditional taxi operators.
- Operational Costs: High operational costs, including fuel prices, vehicle maintenance, and driver wages, impact profitability for taxi companies.
- Integration with Technology: As per the Vietnam taxi market dynamics and trends, leveraging technology, such as GPS tracking, cashless payments, and ride-sharing apps, can improve service efficiency and customer satisfaction.
- Electric Vehicles (EVs): The adoption of electric vehicles for taxi fleets presents opportunities for cost savings and alignment with sustainability goals.
- Expansion to Secondary Cities: Expanding services to secondary cities and rural areas where taxi services are less prevalent can tap into new markets.
- Partnerships and Collaborations: Collaborating with hotels, airports, and businesses can provide steady demand and enhance brand visibility.
Setbacks Faced by the Market Due to Economic Downturns and Consumer Trust Issues
- Consumer Trust Issues: Issues related to safety, service quality, or fare transparency can erode consumer trust and deter taxi usage, negatively affecting the Vietnam taxi market value.
- Technological Disruptions: Rapid technological advancements and the introduction of new mobility solutions can disrupt the traditional taxi market.
- Environmental Concerns: Increasing environmental awareness and regulations on emissions can pressure taxi operators to invest in greener alternatives, impacting short-term costs.
- Grab Holdings Limited
- Diversification: Expanding beyond ride-hailing to include delivery services (GrabFood, GrabMart) and financial services (GrabPay) which can boost Vietnam taxi market revenue.
- Partnerships: Collaborating with local businesses and government agencies to enhance service reliability and expand service coverage.
- Technology Innovation: Introducing advanced technology solutions like GrabShare (carpooling) and GrabBike (motorbike taxis) to cater to different segments of the market.
- Be Group
- Local Market Focus: Tailoring services to meet local market needs and preferences in Vietnam, which can fuel the demand of Vietnam taxi market.
- Technology Integration: Investing in technology to improve service efficiency and customer experience.
- Expansion Plans: Planning for geographic expansion and service diversification beyond ride-hailing to other on-demand services.
- Mailinh Group
- Service Differentiation: Offering premium taxi services with higher comfort and quality standards compared to standard taxis, which can increase its Vietnam taxi market opportunities.
- Technology Adoption: Integrating mobile app functionalities to improve booking convenience and customer interaction.
- Partnerships: Collaborating with hotels, airlines, and other tourism-related businesses to capture tourist transportation needs.
Vietnam Taxi industry Segmentations
The report titled “Vietnam Taxi Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:Market Breakup by Booking Type
- Online
- Offline
Market Breakup by Vehicle Type
- Cars
- Motorcycle
- Others
Market Breakup by Service Type
- Ride Hailing
- Ride Sharing
Vietnam Taxi Market Share
Based on Vehicle Type
Motorcycles are expected to constitute a significant share of the Vietnam taxi market. This is because they have good speed and charge lower fares, thereby becoming an increasingly cost and time-effective option for regular commuters. They can be steered more easily as compared to cars on congested roads and can bypass other vehicles on the road quickly, reducing travel time. Various customers also prefer hailing motorcycles due to their relatively inexpensive and economical nature.Based on Service Type
Ride-hailing is expected to account for a significant Vietnam taxi market share owing to the rise of online apps for cab booking and route searching. This feature enables traditional taxi operators and big multi-transportation companies to track the passengers, ensuring their safety.Meanwhile, ride-sharing is expected to increase in popularity over the forecast period due to increasing traffic and congestion in urban cities in Vietnam. Rising environmental consciousness among consumers is further expected to boost the popularity of ride-sharing services.
Competitive Landscape
The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Vietnam taxi market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.Grab Holdings Inc.
Grab Holdings Inc. was founded in 2021 and is headquartered in Singapore. It enables consumers to order food and groceries online, book rides, make online purchases, and receive financial services like insurance, wealth management, and mortgage loans. It operates in 500 cities across 8 different countries in Southeast Asia. This includes Vietnam, Indonesia, Myanmar, and Cambodia, among others.VINATAXI Company
VINATAXI Company was established in October 1992 and is headquartered in Tan Phu District of Vietnam. This player in the Vietnam taxi industry provides ride-hailing services that are paid via prepaid vouchers or a postpaid card. Its taxis are highly comfortable with spacious interiors and good quality music systems, with an LCD screen to watch movies and television shows.Avis Budget Group Inc.
Avis Budget Group Inc. was incorporated in 1994 and is headquartered in New Jersey, United States. It is mainly engaged in providing car rental and ride-sharing services to people and has a significant global presence. Its rental taxis include luxury cars and specialty-use vehicles, among others. Some of its most popular mobility brands include Avis, Budget, and Zipcar.Other major players in the Vietnamese taxi market include Go Viet Technology Trading Joint Stock Company, FASTGO Vietnam Joint Stock Company, Mai Linh Group, Anh Duong Vietnam Joint Stock Company (Vinasun Corp.), Be Group JSC, VATO.EC, and Thien Phong Trading Co., Ltd., among others.
Vietnam Taxi Market Regional Analysis
Ho Chi Minh City accounts for a major market share owing to the increased launch of new taxis in the region. The prominence of digital ride-hailing platforms such as Grab, Gojek, and Be, among others, for hailing cabs is further contributing to the Vietnam taxi industry expansion.Vietnam Taxi Market Report Snapshots
Vietnam Taxi Market Size
Vietnam Taxi Market Growth
Vietnam Taxi Market Trends
Vietnam Taxi Market Share
- Vietnam Taxi Companies
Vietnam Taxi Market Regional Analysis
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Asia Pacific Taxi Market Overview
6 Vietnam Taxi Market Overview
7 Vietnam Taxi Market by Booking Type
8 Vietnam Taxi Market by Vehicle Type
9 Vietnam Taxi Market by Service Type
10 Market Dynamics
11 Competitive Landscape
Companies Mentioned
- Go Viet Technology Trading Joint Stock Company
- FASTGO Vietnam Joint Stock Company
- Grab Holdings Inc.
- Mai Linh Group
- VINATAXI Company
- Anh Duong Vietnam Joint Stock Company (Vinasun Corp.)
- Avis Budget Group Inc.
- Be Group JSC
- VATO.EC
- Thien Phong Trading Co., Ltd.
