Founded in 2018, Be Group is a relatively new player in Vietnam\u2019s ride-hailing sector, but it\u2019s shaping up to be a worthy contender in the space.<\/p>\n
The company has already seen over 9 million app downloads and grown its fleet to about 100,000 drivers. It achieved\u00a016% market share<\/a>\u00a0in the first half of 2019, making it the second-largest ride-hailing firm in the country after Grab.<\/p>\n It\u2019s also received the\u00a0Fast Enterprise award<\/a>\u00a0at the 2020 Asia Pacific Enterprise Awards in Vietnam earlier this year, a marker of its success so far.<\/p>\n And according to CEO Nguyen Hoang Phuong, Be Group is also on course to breakeven this year \u2013 and achieve profitability in 2021, which she attributes to the company\u2019s focus on building trust with its customers and not engaging in a price war with competitors.<\/p>\n Be Group is operating in what is shaping up to be the next hot market for ride-hailing in Southeast Asia.<\/p>\n Vietnam has one of the\u00a0fastest-growing urban populations<\/a>\u00a0in the region, one that participates actively in the online economy. Ride-hailing firms have the opportunity to address\u00a0some of the transportation issues<\/a>\u00a0faced by Vietnam\u2019s larger cities, such as traffic congestion and the lack of public transportation options.<\/p>\n However, there are numerous roadblocks that ride-hailing firms need to overcome. For one, smaller local companies are up against the cash-burning tactics of regional giants Grab and Gojek, which have the resources to spend in order to increase market share and achieve brand recognition.<\/p>\n Additionally, local players may have trouble getting Vietnamese users on board with their platforms.<\/p>\n \u201cVietnamese consumers tend to favor foreign goods and services,\u201d says Nguyen. She adds that people are often hesitant to try services provided by local players due to a perception that local products are of inferior quality.<\/p>\n Nguyen Hoang Phuong, CEO of Be Group \/ Photo credit: Be Group<\/p>\n<\/div>\n Local firms also often have\u00a0smaller fleet sizes<\/a>\u00a0compared to those of regional giants, which creates problems during peak hour surges when the demand outstrips the supply of drivers.<\/p>\n Plus, the Vietnamese government firmed up its regulations around ride-hailing services only\u00a0earlier this year<\/a>, bolstered by the resistance from local taxi operators. This means that companies are still in the process of navigating the new guidelines.<\/p>\n And these challenges have only been compounded by the Covid-19 pandemic, which has kept people at home and reduced the number of commuters drastically.<\/p>\n All of these make the Vietnamese ride-hailing market a challenging space, which is why Be Group is choosing to adopt a different approach toward developing its platform.<\/p>\n One of the key ways Be Group differentiates itself is by positioning the company as an \u201copen platform.\u201d According to Nguyen, it is veering away from the super-app strategy adopted by many other ride-hailing firms.<\/p>\n The company wants to be a mobility-as-a-service (MaaS) provider and is relying on building partnerships with other companies in order to grow its ecosystem in a sustainable manner. MaaS enables users to plan, book, and pay for multiple types of mobility services from a single platform \u2013 in this case, Be Group\u2019s app.<\/p>\n \u201cAs an open platform, we have been and will continue to shake hands with other strategic partners to deliver their products to our customers,\u201d says Nguyen. \u201cTogether with partners, we want to serve and give more value to customers as much as possible.\u201d<\/p>\n The company operates BeBike and BeCar, its motorcycle- and car-hailing services, as well as its BeDelivery service for parcels.<\/p>\n Photo credit: Be Group<\/p>\n<\/div>\nVietnam\u2019s ride-hailing potential<\/h2>\n
![\"\"](\"https:\/\/cdn.techinasia.com\/wp-content\/uploads\/2020\/11\/IMGL4076.jpg\")
<\/p>\nPartnerships are key<\/h2>\n
![\"\"](\"https:\/\/cdn.techinasia.com\/wp-content\/uploads\/2020\/11\/Company-photos-Landscape.jpg\")
<\/p>\n