FastGo, Vietnam’s first ride-hailing service has kicked off operations in Myanmar as part of its Southeast Asia expansion plans. Its joint venture with Myanmar’s conglomerate Asia Sun Group began offering services on December 28.
Nguyen Huu Tuat, CEO of FastGo said at the launch that Myanmar is a promising market with the e-commerce, travel, and retail sectors are all growing rapidly. With a population of 50 million, transport demand in the country is expected to rise, he said.
FastGo plans to target major cities and provinces and expects to sign up two million users and 100,000 drivers this year.
FastGo said that it will use the same business model in Myanmar as it does in Vietnam, only taking a fixed service cost from drivers and not commissions on each ride, and that is guarantees its drivers higher fares during rush hour and bad weather.
FastGo’s technology system allows users to tip drivers, and offers a priority service for certain customers. According to Nguyen, FastGo has partnered with the Asia Sun Group because the group has experience in various sectors, deep pockets and an understanding of the local market and culture.
FastGo Vietnam was established in April 2018 with its headquarters in Hanoi. The company belongs to Nextech, a leading Vietnamese technology firm. The company began its Vietnam operations last June and now has over 40,000 partner drivers in 10 provinces and cities.
This year the company plans to expand its services to 20 cities in Vietnam and five other Southeast Asian markets, including Myanmar, Cambodia, the Philippines and Thailand. As well as ride-share services, the company plans to offer other services such as food delivery.