Lalamove, an on-demand delivery platform founded in Hong Kong in 2013, has launched motorbike and car ride services in Ho Chi Minh City, marking its entry into the ride-hailing sector in Vietnam. The services became available on May 20, 2025, through the Lalamove app, offering options for motorbikes and four and seven seat cars.

Nguyen Hai Dang, CEO of Lalamove Vietnam, said that the initiative aims to provide cost-effective travel options and enhance earnings for drivers. The company did not disclose the size of its fleet but indicated plans to expand the service to additional locations soon.

Lalamove operates in 14 markets across Asia, Latin America, Europe, the Middle East, and Africa. It entered the Vietnamese market in 2017, initially focusing on 24/7 delivery services in Ho Chi Minh City.

Lalamove also offers ride-hailing services in several Southeast Asian countries, including Indonesia, Thailand, the Philippines, and Malaysia. Vietnam’s transportation and delivery market shows growth potential.

🔗 Source: VnExpress

🧠 Food for thought

1️⃣ Vietnam’s ride-hailing market presents substantial growth opportunity

Lalamove’s entry into Vietnam’s ride-hailing sector aligns with remarkable market projections showing it will grow from $1.7 billion in 2024 to about US $2.5 billion by 2029, representing a consistent annual growth rate of over 8% 1.

This expansion is supported by Vietnam’s robust digital infrastructure, with 77.93 million internet users (79.1% of the population) and 161.6 million active mobile connections creating an ideal environment for app-based transportation services 2.

The market is particularly promising given that 47% of Vietnamese users utilize ride-hailing services several times weekly, with 7% using such services almost daily—demonstrating strong habitual usage rather than occasional consumption 3.

User numbers are expected to increase from 22.8 million in 2017 to 37 million by 2029, representing a penetration rate of 36% among Vietnam’s population, which indicates significant remaining growth potential 1.

2️⃣ Strategic timing follows competitive landscape shifts

Lalamove’s move comes during a significant realignment in Vietnam’s ride-hailing competitive landscape, with Gojek’s exit creating space for both established and new players to gain market share 4.

While Grab maintains leadership with approximately 60% market share, local players like Be and newcomer Xanh SM have successfully carved out significant positions, with Xanh SM quickly achieving 32% market penetration despite being relatively new 4.

This timing follows Lalamove’s established expansion pattern across Southeast Asia, where they typically enter markets with delivery services first before diversifying their offerings—a strategy they’ve now followed in Vietnam after operating delivery services there since 2017 5.

The company has consistently demonstrated a disciplined approach to new market development, typically aiming for profitability within two years of entering a new market. This suggests their ride-hailing expansion comes after achieving stable delivery operations in Vietnam 5.