E-hailing apps rush to add payment apps to their services

E-hailing apps, after a period of focusing on their core business field of carrying passengers, have begun seeking other business opportunities, Thoi Bao Kinh Te Sai Gon reported. Most of them are offering an e-payment service.

On August 5, the Gojek app became officially operational in Vietnam, which also marked the end of the mission of GoViet brand in Vietnam after two years of presence in the market.

E-hailing apps rush to add payment apps to their services



On this occasion, CEO of Gojek Vietnam Phung Duc Tuan revealed that Gojek would focus on three major services in the time to come – passenger transport, goods delivery and payment. Of this, online payment (integrating e-wallet into the app), which is still lacking in Gojek’s ecosystem, will be the center of development.

Grab, the biggest rival of Gojek, began integrating the payment function into its app – Moca e-wallet – in late 2018.

In the home market of Indonesia, Gojek provides more than 20 services on the same app platform. However, the integration of services into GoViet was relatively slow, which made it difficult to compete with rivals.

Gojek, which was one step behind Grab, decided to speed up the process by joining hands with PayPal to provide services instead of developing an e-wallet itself.

 


Analysts say that this is a key strategy for foreign e-hailing brands such as Gojek and Grab, and domestic brands such as Be and FastGo to consolidate their service ecosystems.

In the home market of Indonesia, Gojek provides more than 20 services on the same app platform. However, the integration of services into GoViet was relatively slow, which made it difficult to compete with rivals.

However, after receiving investments from a series of big companies, including Facebook, Paypal, Tencent and Google, Gojek decided that integrating payment service must be done after the restructuring in Vietnam.

Gojek’s major rivals in the e-hailing sector in Vietnam such as Grab, Be and Fastgo all have integrated e-wallet into their services.

Two years ago, Grab began its payment method via Moca e-wallet which quickly helped the brand to be among six e-wallets with largest market share in Vietnam.

Earlier this year, Be joined forces with SmartPay e-wallet, while FastGo began giving support in non-cash payment via Vimo. Meanwhile, food ordering apps such as Baemin and Now offer other non-cash payment options.

A report from Standard Chartered Bank on cash digitization in ASEAN published in 2019 says that the Southeast Asian market has ideal conditions to deploy e-payment services. The average cash use rate in the region, not including Singapore, was 47-65 percent before Covid-19.

A report from Adsota released last February also pointed out that Southeast Asia has two countries listed among the world’s biggest smartphone markets – Vietnam and Indonesia. This helps Southeast Asia become busier with investments in fintech in general and digital payment in particular.

Translated by Mai Lan 

Merger could tip scales in ride-hailing

Merger could tip scales in ride-hailing

The two local ride-hailing platforms be and FastGo could negotiate a merger to break the dominance of Grab in Vietnam.

Vietnamese ride-hailing drivers risk accidents with reckless driving

Vietnamese ride-hailing drivers risk accidents with reckless driving

Almost one-third of ride-hailing drivers in Vietnam have had a road accident, with an astounding 80% attributing the cause to their own risky driving, according to new research.

 
 

Other News

.
Promising figures offering confidence for pharma future
Promising figures offering confidence for pharma future
FEATUREicon  15/01/2021 

Vietnamese pharmaceutical giants rushed to new business lines in 2020 to create new motivation for growth amid the ongoing pandemic complications, with some changes bringing about better results.

Phu Quoc island city draws $16.5 billion in investment
Phu Quoc island city draws $16.5 billion in investment
BUSINESSicon  15/01/2021 

Phu Quoc, Vietnam’s first island city, has attracted 372 projects to date with capital totalling some $16.5 billion.

Experts warn about risky investments in gold and stocks
Experts warn about risky investments in gold and stocks
FEATUREicon  15/01/2021 

With increasingly rapid developments occurring in the gold and stock markets, economic experts believe these represent risky investment channels, with investors needing to carefully consider all of their financial decisions.

Tax evasion questions raised as 55% of FDI enterprises report losses
Tax evasion questions raised as 55% of FDI enterprises report losses
BUSINESSicon  15/01/2021 

Numerous FDI enterprises have reported losses over the course of several years, despite continuing to expand production and business activities, along with an annual increase in revenue, thereby causing losses and damage to the state budget.

Footwear industry needs to resolve difficulties to make breakthrough
Footwear industry needs to resolve difficulties to make breakthrough
BUSINESSicon  15/01/2021 

The Covid-19 pandemic has continued to obstruct trade activities of the leather and footwear industry in the main export markets of Vietnam, including Europe and the US.

Vietnam exports 1.37 billion medical masks in 2020
Vietnam exports 1.37 billion medical masks in 2020
BUSINESSicon  14/01/2021 

Domestic firms shipped over 1.37 billion medical face masks of various types abroad throughout 2020, according to statics compiled by the General Department of Vietnam Customs.

Vietnam's GDP to grow by 8 per cent: Oxford Economics
Vietnam's GDP to grow by 8 per cent: Oxford Economics
BUSINESSicon  14/01/2021 

Southeast Asia’s economic growth will rebound to 6.2 per cent in 2021 with Vietnam achieving 8 per cent growth, according to the latest economic outlook report from Oxford Economics commissioned by chartered accountancy body ICAEW.

Covid-19 forces travel firms to undergo restructuring
Covid-19 forces travel firms to undergo restructuring
FEATUREicon  14/01/2021 

For travel firms to survive the pandemic, they have had to undergo restructuring.

Manufacturing hub dreams manifesting with big moves
Manufacturing hub dreams manifesting with big moves
BUSINESSicon  13/01/2021 

Vietnam is pushing ahead in its mission to become the ideal manufacturing hub for overseas investors by taking advantage of a largely pandemic-free landscape and building on 2020’s successes.

Vietnam takes advantage of FTAs to enjoy trade surplus with markets globally
Vietnam takes advantage of FTAs to enjoy trade surplus with markets globally
BUSINESSicon  14/01/2021 

Last year’s export growth of 6.5% can be viewed as a bright spot in the nation’s economic picture, with this growth being attributed to the signing of a number of free trade agreements (FTAs).

New regulations to change Vietnam automobile industry in 2021
New regulations to change Vietnam automobile industry in 2021
BUSINESSicon  14/01/2021 

Cars in Vietnam since 2021 are subject to new regulations such as registration fee, import tariff, and higher emission standards.

Vietnam economy set to bounce back in 2021
Vietnam economy set to bounce back in 2021
BUSINESSicon  13/01/2021 

Vietnam is well-positioned to revive its economy this year due to a boost in private investment and exports, experts told a forum in HCM City on Monday.

Vietnam green-lights Anheuser-Busch InBev-SAB Beer merger
Vietnam green-lights Anheuser-Busch InBev-SAB Beer merger
BUSINESSicon  13/01/2021 

Anheuser-Busch InBev and SAB Beer announced their merger in Viet Nam on January 12 following the approval of the Ministry of Industry and Trade.

Coffee farmers suffer poor crop, low price
Coffee farmers suffer poor crop, low price
BUSINESSicon  13/01/2021 

Coffee farmers in the Central Highlands of Vietnam are entering the harvest season anxiously as the prices of coffee are still kept at a low level, whereas the production costs are increasing.

EU investors to pour $1 billion into logistics center in Phu My
EU investors to pour $1 billion into logistics center in Phu My
BUSINESSicon  13/01/2021 

Many big investors from the EU have expressed a willingness to invest $1 billion in a logistics center in Phu My.

Vietnam budget deficit forecast at 3.6% of GDP in 2021
Vietnam budget deficit forecast at 3.6% of GDP in 2021
FEATUREicon  12/01/2021 

Fitch Solutions holds a more optimistic view on Vietnam’s economic rebound in 2021, with its real GDP growth forecast at 8.6%, against the government’s 6.5% target.

VIETNAM BUSINESS NEWS JANUARY 14
VIETNAM BUSINESS NEWS JANUARY 14
BUSINESSicon  14/01/2021 

E-commerce anticipated to record stellar growth in 2021

Building materials market forecast to be robust in 2021
Building materials market forecast to be robust in 2021
BUSINESSicon  12/01/2021 

The building materials market is forecast to be robust this year, with the demand fuelled by the increase in infrastructure development investment and the recovery of the property market, according to the Ministry of Construction.

Vietnamese ports on pace to post banner year
Vietnamese ports on pace to post banner year
BUSINESSicon  12/01/2021 

Vietnam’s port sector will flourish this year as trade in goods is expected to thrive on the back of recovery in production, domestic consumption, and export markets, according to industry analysts.

Bright future tipped for Vietnam’s e-commerce market
Bright future tipped for Vietnam’s e-commerce market
BUSINESSicon  12/01/2021 

Vietnam’s e-commerce market is forecast to continue growing strongly in the time to come thanks to a big population with high rates of young people and internet users.

 
 
 
Leave your comment on an article

OR QUICK LOGIN