Consumers’ increasing demand for convenience has led to the boom of ride-hailing apps worldwide. Viettel Post, the courier delivery services arm of Vietnam’s largest telecommunications company Viettel Group, has joined the ring by creating its own ride-hailing app MyGo.
However, Viettel Post insists its operation model sets its services apart because it focuses on creating a sustainable and affordable service for the entire population of Vietnam. Available both on iOS and Android, users can use the app for car, motorbike, delivery and transport services.
Sustainable Business Module
According to the courier delivery services firm, most ride-hailing apps on the market currently rely heavily on marketing and discounts. But Tran Trung Hung, CEO of Viettel Post firmly believes that this is not a sustainable operational module due to the difficulty in making a profit.
“Our marketing strategy will be different. We will not put too much money into cash-burning promotions. Rather, we will deliver long-term benefits to our partners and customers. This will include a promise not to raise prices during peak hours and bad weather. Also, we will equip our drivers with basic sales skills. We believe this will enable us to grow as fast as our competitors but at the same time, our model will be sustainable,” said Hung.
An All-Inclusive Service
The CEO added that based on their research, the demand for ride hailing and delivery isn’t only confined to major cities. Consumers in small cities are showing massive interest in these services. And since other players on the market haven’t been able to satisfy the demand outside the main cities, Viettel said this will be a business opportunity for MyGo to bring these services to the whole of Vietnam.
Another advantage MyGo has over its competitors lies in the services they offer. Hung said other ride-hailing services only allow their drivers to transport people or goods one at a time, but MyGo encourages drivers to pick up and drop off multiple passengers or goods at once. This is aimed at reducing users’ costs and cutting down waiting time.
So far, 105,000 drivers have already registered with MyGo and will provide service in 63 cities and provinces throughout the country. Viettel Post said it plans to expand MyGo to international markets including Mynamar and Cambodia, within this year.
New Retail Platform
Viettel Post has also rolled out a new retail platform – Voso.vn . The platform willprovide B2C trade, bringing consumers together with companies. Its C2C segment which is similar to the eBay model that connects private buyers with sellers, focusing on the agricultural sector.
This new project will make use of Viettel’s strengths in delivery and mobile payment. It will also organise training courses for farmers to teach them how to use the platform and different ways to market their products.
Viettel Group is the largest telecommunications group in Vietnam with 76 million customers. The group has more than 20 subsidiary companies operating in different businesses including telecom, investment, real estates, foreign trade and technical services.
In 2014, Viettel earned US$9.8 billion in revenue and US$2 billion in profit, ranking among the top largest enterprises in the country in terms of revenue. Viettel Global is also one of the biggest Vietnamese overseas investors. It is currently operating 9 telecommunications companies in 9 countries across Asia, Africa and Asia with 13 million customers.