MBA 6053
Uber’s development progress in Vietnam
MBA 6053 Economics for Managers
Abstract
Before Uber’s entry, Mai Linh Taxi, Vinasun Taxi and Vina Taxi are the most popular taxi in
Vietnam. They also known as national brands. It’s not difficult to see many cars of these brands
moving on the road every day. Fourteen years later, people realize there is some new taxi brand
appear. People do not need to call to switchboard for booking car like before, they can book by
themselves through app. This is a major turning point for the development of the taxi industry in
Vietnam. Based on research analysis and journal articles, this paper is discuss about the
development progress of Uber in Vietnam’s market.
Uber’s development progress in Vietnam
Uber is the one of the companies laying the foundation for the technology era 4.0. By
modernizing the use of taxi, Uber offer a great experience to the customers. Uber also
meets most of the transportation and delivery needs that people need. Besides, it also
improved issues such as service quality – something that traditional taxis have not yet
done. Uber has enough ability to defeat the other components like variety the services
which is never had in Vietnam. However, when Uber entered another country it will be
difficult because of regulations set by the government to reduce the competition of Uber.
In 2000s, when people want to move to a certain place by car, they have to call to switchboard of
taxi brand for booking. “The most important cases of monopsony will occur in connection with
monopoly” [ CITATION Rob34 \l 1033 ]. It can be said that Mai Linh Taxi, Vinasun Taxi and
Vina Taxi have market power in this time. They do not need to adjust lower price or promotion
program to compete to others. Otherwise, they are collusive together to become the “price
, maker” in the demand. Due to the lack of drivers, the quality of services was poor. In some cases,
people will be missed their importance events by waiting too long for driver or call operator.
Sometimes, customers have bad experiences using taxi such as being charged high fare in
holidays or peak time without informed in advance, have to walk a long distant to catch a car,
waiting time should be paid by the customers, being refused if the movement itinerary is short.
Supposing that the car of Ms. Michelle was broken and she wants to go home from the office by
taxi. She is the most person who known well about the distance from the office to her home is
about 10 kilometers. But the driver changed the daily road to go home with a distance higher
than 5 kilometers because he said that is the best way to avoid traffic jam. Of course, Michelle
had to pay a higher price than normal. She only knew the price after the driver has finished the
trip.
Uber was established in 2009 at San Francisco under the name UberCab. It officially
launched in 2010 as a luxury car service serving the executives of San Francisco and Silicon
Valley. By using smart phone, people can access to the booking car app easily. After success in
the domestic market, Uber begins to open their market to international in 2013. In 2014, Uber
joined Vietnam’s market. Initially, people do not get used to using the app for booking cars
because technologies like smartphones are not popular. However, Uber have fixed some gaps in
traditional taxi in Vietnam and still developing. For example, people can know the price of the
trip in advance through app. Because of these reasons, the appearance of Uber like the fresh air
for taxi industry at the moment.
Gradually, people began to replace the habit of booking a taxi through the call center by
booking them themselves. By using app, Uber can estimate the supply and the demand from time
to time to come up with different pricing policies. In the different time of the day, the pricing
system might be change. The customer of Uber feel exploited by some dynamic pricing like
prices can double or halve in matter of minutes [ CITATION Har19 \l 1033 ]. In the special
Uber’s development progress in Vietnam
MBA 6053 Economics for Managers
Abstract
Before Uber’s entry, Mai Linh Taxi, Vinasun Taxi and Vina Taxi are the most popular taxi in
Vietnam. They also known as national brands. It’s not difficult to see many cars of these brands
moving on the road every day. Fourteen years later, people realize there is some new taxi brand
appear. People do not need to call to switchboard for booking car like before, they can book by
themselves through app. This is a major turning point for the development of the taxi industry in
Vietnam. Based on research analysis and journal articles, this paper is discuss about the
development progress of Uber in Vietnam’s market.
Uber’s development progress in Vietnam
Uber is the one of the companies laying the foundation for the technology era 4.0. By
modernizing the use of taxi, Uber offer a great experience to the customers. Uber also
meets most of the transportation and delivery needs that people need. Besides, it also
improved issues such as service quality – something that traditional taxis have not yet
done. Uber has enough ability to defeat the other components like variety the services
which is never had in Vietnam. However, when Uber entered another country it will be
difficult because of regulations set by the government to reduce the competition of Uber.
In 2000s, when people want to move to a certain place by car, they have to call to switchboard of
taxi brand for booking. “The most important cases of monopsony will occur in connection with
monopoly” [ CITATION Rob34 \l 1033 ]. It can be said that Mai Linh Taxi, Vinasun Taxi and
Vina Taxi have market power in this time. They do not need to adjust lower price or promotion
program to compete to others. Otherwise, they are collusive together to become the “price
, maker” in the demand. Due to the lack of drivers, the quality of services was poor. In some cases,
people will be missed their importance events by waiting too long for driver or call operator.
Sometimes, customers have bad experiences using taxi such as being charged high fare in
holidays or peak time without informed in advance, have to walk a long distant to catch a car,
waiting time should be paid by the customers, being refused if the movement itinerary is short.
Supposing that the car of Ms. Michelle was broken and she wants to go home from the office by
taxi. She is the most person who known well about the distance from the office to her home is
about 10 kilometers. But the driver changed the daily road to go home with a distance higher
than 5 kilometers because he said that is the best way to avoid traffic jam. Of course, Michelle
had to pay a higher price than normal. She only knew the price after the driver has finished the
trip.
Uber was established in 2009 at San Francisco under the name UberCab. It officially
launched in 2010 as a luxury car service serving the executives of San Francisco and Silicon
Valley. By using smart phone, people can access to the booking car app easily. After success in
the domestic market, Uber begins to open their market to international in 2013. In 2014, Uber
joined Vietnam’s market. Initially, people do not get used to using the app for booking cars
because technologies like smartphones are not popular. However, Uber have fixed some gaps in
traditional taxi in Vietnam and still developing. For example, people can know the price of the
trip in advance through app. Because of these reasons, the appearance of Uber like the fresh air
for taxi industry at the moment.
Gradually, people began to replace the habit of booking a taxi through the call center by
booking them themselves. By using app, Uber can estimate the supply and the demand from time
to time to come up with different pricing policies. In the different time of the day, the pricing
system might be change. The customer of Uber feel exploited by some dynamic pricing like
prices can double or halve in matter of minutes [ CITATION Har19 \l 1033 ]. In the special
