Ride-hailing firms raise fees as market shifts focus to profitability
The ride-hailing market in Việt Nam is entering a new phase of competition as major platforms raise service fees and fares after years of relying on subsidies and promotions to attract users.
HÀ NỘI — Việt Nam’s ride-hailing market is entering a tougher phase of competition as major platforms raise fares and service charges after years of relying on subsidies and promotions to attract customers.
On May 5, Be Group announced updated pricing for several Be ride-hailing services, marking its first fare adjustment in five years.
Minimum fares for two-wheeled rides increased to VNĐ13,817 (US$0.54) in HCM City and VNĐ14,472 in Hà Nội. For journeys between 2km and 12km, fares now range from VNĐ4,600 to VNĐ5,400 per kilometre.
For four-wheeled services, fares for the first 2km now range from VNĐ31,501 to VNĐ31,704, while charges for the next 12km range from VNĐ11,000 to VNĐ14,000 per kilometre.
The company said the adjustments reflected rising operational costs, particularly fuel prices, and would help increase drivers’ earnings by between 2 per cent and 11 per cent per trip or delivery order.
Meanwhile, Grab raised platform fees from April 28.
For passenger transport services, Grab increased platform charges to VNĐ3,000 per motorbike ride and between VNĐ5,000 and VNĐ19,000 for car services, excluding taxis.
The platform also introduced additional service fees ranging from VNĐ4,000 to VNĐ11,000 for GrabExpress orders. Food delivery and parcel orders are now subject to platform fees of VNĐ4,000 or VNĐ6,000, depending on merchant partnership models.
Platform fees are surcharges collected by ride-hailing companies and incorporated into fares displayed on their applications. They are separate from drivers’ earnings. Be Group’s platform fee is calculated at 10.5 per cent of ride fares.
Grab said the changes were intended to support platform operations, improve technical systems, add new features and fund promotional programmes, while also providing additional resources for drivers and community initiatives.
The latest increases underline a broader shift in Việt Nam’s ride-hailing industry.
Between 2018 and 2023, consumers became accustomed to aggressive discount campaigns, low fares and subsidy-driven competition among ride-hailing applications.
Analysts now say the market is placing greater emphasis on financial sustainability as companies face mounting operating costs and pressure to improve profitability.
The moves by Grab and Be Group follow more than nine weeks of tensions in the Middle East, which have contributed to fluctuations in global fuel prices.
Since late February, domestic fuel prices in Việt Nam have been adjusted 19 times.
RON95-III gasoline currently sells for VNĐ23,750 per litre, while diesel and mazut are priced at VNĐ28,170 and VNĐ20,020 respectively.
According to the e-Conomy SEA 2025 report by Google, Temasek and Bain & Company, Việt Nam’s ride-hailing and food delivery market is projected to reach $5 billion in 2025 and expand to $9 billion by 2030.
The market is currently dominated by three major multi-service platforms, Grab, BE Group and Green SM (formerly known as Xanh SM), which provide passenger transport, food delivery and logistics services. — BIZHUB/VNS
