According to Ho Huy, the Group’s chairman, the service was piloted before being officially introduced. This application was built by Vietnamese engineers and is available for both iOS and Android operating systems.
With Mai Linh.Bike, the group does not invest in buying motorbikes; the application will connect customers with drivers, who are partners with the group instead of employees.
Drivers who want to become the Group’s partners have to take part in a training course. When they are selected, an amount of VND100,000 (US$4.5) will be deposited to maintain their accounts.
From November 16 to the date, the numbers of registered drivers are about 3,200 in HCMC and more than 1,500 in Ha Noi.
Regarding the price, Mai Linh Bike is not much different than GrabBike, and UberMoto. The price of the Group’s service is reported at VND11,000 (US$0.5) for the first two kilometers and VND3,800 (US$0.17) for the next kilometer.
For Mai Linh Premium, with more luxurious motorbikes, the rates will be VND20,000 (US$0.88) for the first two kilometers and VND7,000 (US$0.31) for each subsequent kilometer.
Meanwhile, GrabBike charges customers VND11,000 and VND12,000 (US$0.5 and US$0.53) for the first 2km in Hà Nội and HCM City, respectively. UberMoto charges passengers at least VND10,000 (US$0.5) at the start of each trip and the VND3,700 (US$0.16) per kilometer.
To attract partners, Hung said that drivers will be free to use the Mai Linh services for the first two months. Then, the Group’s revenue sharing policy will be at 15-85, i.e. the Group will receive 15 per cent of revenue from the transportation. This figure is much lower than the revenue sharing of other companies in the market, which are between 20 and 25 per cent.
Bui Danh Lien, Chairman of the Ha Noi Transport Association, said that as more firms that enter the market, increasing the competition, will push down service prices for customers.
However, Lien expressed concerns for Mai Linh Bike because GrabBike is taking over the market, with even UberMoto being dominated by GrabBike.
“Technological motorbike taxi services are not new, so to succeed, Mai Linh Group must have plans to impress the market to change the habits of consumers with the better and more professional service including promotion program, which must be more attractive than those of GrabBike, UberMoto,” Lien said.
Furthermore, communication and marketing strategies must also be good so that its new service can be known by consumers, Lien added.