Vietnam’s ride-hailing app market just became more crowded as Singapore-based tech firm Mass Vehicle Ledger (MLV) launched its ride-hailing app TADA in Ho Chi Minh City. Vietnam is the third Southeast Asian market that the firm is entering after Singapore and Cambodia.
TADA says it will operate on a new business model, and that instead of billing commissions from drivers like Grab and Go-Viet do, the app aims to profit off advertising as well as fees from B2B (business to business) partners that participate in their ecosystem.
This ecosystem will operate on blockchain technology to store records such as payments and vehicle maintenance, and will engage transport-related companies such as traditional taxis, insurance, repair services, and car dealers.
Kay Woo, the South Korean founder of MLV, said that among its initial Vietnam partners are Lotte Rental, a rental company of cars and equipment belonging to South Korean conglomerate Lotte Group, local insurance provider PTI and local taxi firm Vinataxi.
Woo said that the app will not offer promotions like its rivals. "They throw promotions everyday but this won’t last forever, and prices will eventually go up. We focus on stability, and without commission our prices will be lower."
At the recent TADA “opening, Woo said that over 2,000 drivers have already signed up to be drivers with the company. The company plans to have 25,000 drivers register with it this year but has no plans to join the motorcycle segment in the near future.
TADA, which means, "let's ride" in South Korean, opened in Singapore in July 2018 and in Cambodia in December 2018. After HCMC, the firm plans to expand the app to Hanoi and Da Nang.
Peter Nguyen, TADA’s Operations Manager, explained that because TADA does not charge drivers, it is only a technological solution. However, should it be asked to do so by relevant government authorities, the company is willing to comply with any and all transport tax and regulatory guidelines.