Mai Linh launches motorbike taxi service to compete with Uber and Grab.
UberMoto and GrabBike are about to have a new competitor as, on November 20th, Mai Linh Taxi Company plans to launch its Mai Linh Bike motorbike taxi fleet with comparable prices.
According to Mr. Ho Huy, Chairman of the Board of Directors of Mai Linh, Mai Linh's motorbike taxi application, called Mai Linh Bike, has been tested for about a month by the company's employees and drivers.
This is considered a preparatory step for Mai Linh Bike to officially launch in Hanoi, Da Nang, and Ho Chi Minh City on November 20th.
Similar to GrabBike and UberMoto, customers using Mai Linh's motorbike taxi service will be able to see information about the driver such as their full name, photo, license plate number, and phone number.
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| Mai Linh drivers are test-driving ride-hailing motorbike services. |
One of the main concerns is the fares, which Mai Linh claims are competitive.
For regular vehicles, the applicable fare is 11,000 VND for the first 2km and 3,800 VND for each subsequent kilometer.
The premium vehicle service has double the regular fare, at 20,000 VND for the first 2km and 7,000 VND for each subsequent kilometer. However, this Premium service will only be implemented in the second phase later on.
Thus, it can be seen that the price of Mai Linh Bike is not significantly different from UberMoto and GrabBike.
Currently, UberMoto charges 3,700 VND/km. However, customers are charged an additional 200 VND per minute of service, not to mention a 5,000 VND cancellation fee and a minimum fare of 10,000 VND.
Meanwhile, GrabBike fares in Hanoi and Ho Chi Minh City are calculated according to two different price lists.
Specifically, GrabBike charges 11,000 VND for the first 2km in Hanoi, while the first 2km in Ho Chi Minh City costs 12,000 VND.
The prices of both Uber and Grab are also adjusted flexibly when demand increases based on the area and time of day, so they can increase quite significantly.
One of the tactics used to attract drivers (whom Mai Linh calls partners) to cooperate is the revenue-sharing ratio.
Accordingly, Mai Linh offered a revenue sharing ratio of 0% for the group and 100% for the partner for the first two months, from November 20, 2017 to January 19, 2018, in order to attract drivers.
In the following months, the company applied a 15% commission for Mai Linh and an 85% commission for drivers. This is lower than the 20-25% applied by competitors Grab and Uber.
According to a representative from Mai Linh, drivers wishing to become partners must undergo a training course and, upon acceptance, will pay a maintenance fee of 100,000 VND to maintain their account.
If the remaining balance drops to just 10,000 VND, the company will lock the driver's Mai Linh Bike account.
According to TTO
