A big challenge for e-commerce is delivery service quality

Phuong Dung, an office worker in Hanoi, said she has not hired a permanent housemaid in the last three years, but instead uses the service provided by jupviec.vn.

Dung has to pay VND150,000-180,000 for 3.5 hours of work, which means that the rate for a by-hour housemaid is higher than for permanent workers. However, she still prefers using the service, because she the avoid inconvenience of housemaids living with her family.

Previously, she negotiated the prices and time of working. However, sometimes the two parties could not agree on the time most convenient to both of them. With jupviec app, she can call service at any time.

Jupviec.vn has been operating for six years with staff of 3,000 workers, providing 2 million working hours a year in eight provinces and cities.

Jupviec and other apps for laundry, medicine, pet food or taxis help Dung and other busy people ease their workload. 

A survey by Q&Me, a market analysis firm, said that purchases via mobile apps soared in 2018 with 47 percent of mobile users. Nielsen said that 98 percent of internet users in Vietnam buy goods online at least once.

As for the scale of the Vietnamese market, Demi Yu, regional director of GrabFood, said Vietnam, together with Indonesia, is the fastest growing market for GrabFood which has increased by 20 times since the launch in HCMC in June 2018.

One of the biggest advantages of GrabFood is the monopoly in supplying some products. 

“Together with strategic business partners, we created some drinks which are sold only on the Grab platform. Some fast food chains in Vietnam choose GrabFood as their priority food delivery service provider,” she said.

Lai Tien Manh, a branding expert, said that with high number of apps, the competition among rivals is very stiff. If businesses cannot find niche markets or build a competitive edges, they will not be able to exist. The quality of services is the key that determines the prosperity of apps.

Analysts say a big challenge for e-commerce is delivery quality.

Nguyen Quang Thuan from Sen Do Technology JSC, emphasizing that logistics is the ‘backbone’ of e-commerce, said that most domestic delivery firms cannot satisfy the requirements.

A survey found that 38 percent of consumers complained about delivery service quality.

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