Gojek officially launches GoCar service in Vietnam

Gojek has officially launched its GoCar service for all users in Ho Chi Minh City starting today, three years after the Indonesia-based ride-hailing giant entered Vietnam.

Photo credit: Gojek Vietnam

Gojek had wanted to roll out car-hailing services in the country much earlier but faced difficulties in getting permission from regulators. Gojek (previously branded as GoViet) also had to reshuffle its leadership team in Vietnam, with two CEOs departing within just 18 months.

This year, the country’s fourth pandemic wave pushed back the launch by another five months. Restrictions in Hanoi and Ho Chi Minh City were only lifted at the end of September.

“Today’s launch of GoCar for all users in Ho Chi Minh City is therefore a very significant milestone,” says Duc Phung, general manager of Gojek Vietnam, in a press statement. “We are very happy because the opening up of transportation services also means that the city is recovering.”

See also: Will Gojek’s ambitions in Vietnam survive a merger?

The new car-hailing service is called GoCar Protect, which Gojek says has incorporated additional safety and hygiene features for the safety of both drivers and riders. 

According to the company, all cars will be equipped with an air purifier, sanitizers, and a transparent protective shield between drivers and riders. All GoCar Protect drivers must also confirm mask use by taking a selfie before they can start driving for the day. 

Riders can pay in cash and credit or debit cards as GoPay is not yet available in the country. In September 2020, DealStreetAsia reported that Gojek had acquired a controlling stake in local e-wallet WePay, which has a license from the State Bank of Vietnam.

Gojek plans to extend its GoCar service to Hanoi soon, and the company will add more service lines outside of GoCar Protect when the Covid-19 pandemic situation in the country further improves.

The ride-hailing giant said it won’t compete with other rivals using discounts. A 2020 report found that Grab has cornered 75% of Vietnam’s ride-hailing market, pulling it far ahead of both Gojek and homegrown player Be.

At the regional level, GoTo Group, the merged entity of Gojek and Tokopedia, recently completed a US$1.3 billion pre-IPO round led by the Abu Dhabi Investment Authority.