Revitalize the market

- Many motorbike drivers for one of the most popular ride-hailing companies in the country are complaining. The reason is that recently, reduced fares and a new fare calculation method have led to a decrease in their income. Increased input costs coupled with falling income are making life difficult for the drivers.

Why are freight rates decreasing? And who will be happy about this?

- The ride-hailing market in Vietnam is always fiercely competitive. Lowering fares aims to meet customers' demand for economical transportation. Lower prices, while incomes haven't fundamentally improved, might appeal to consumers. But on the other hand, drivers get tired. If most feel exhausted, they might switch to another platform or change careers.

- This also helps to understand why a well-known ride-hailing company in Europe hasn't entered the Vietnamese market yet. Constant daily competition puts businesses under constant pressure. However, this also creates a fresh and high-quality market. Consumers benefit from having many competitors offering the same goods or services.

- At any given time, one party benefits while another's benefits diminish. Competition in service quality, price, punctuality, etc., alters market share. Striving to compete for consumer benefit is the driving force behind market innovation.

TU QUEO

Source: https://www.sggp.org.vn/lam-moi-thi-truong-post815480.html