Tough pressure posed by Uber, Grab pushes Vinasun's revenue back to 7 years ago
By Minh An
October 24, 2017 | 10:30 AM GMT+7
Vinasun taxi company announced its revenue of only VND547 billion (more than US$24 million) in the third quarter of 2017, equivalent to 46 per cent of the same period last year.
Uber and Grab makes traditional taxi firms like Vinasun and Mai Linh face difficulties.
This is the company's lowest quarterly revenue since 2010.
In the past seven years, Vinasun's revenue grew but it began to decline when Uber and Grab appeared.
For the first nine months of 2017, Vinasun's revenue reached VND2,450 billion (nearly US$108 million), down 30% year over year.
It is notable that in Vinasun's revenue structure, franchise and taxi operation in the first nine months were VND340 billion (about US$15 million), accounting for 14% of total revenue.
This is the result from a change of Vinasun's operation mode in order to compete with Uber and Grab. Instead of being completely self-employed, a part of Vinasun's cars turned into a franchise so in the first half of 2017, it cut nearly 8,000 personnel contracts.
According to Vinasun's announcement, its profit also dropped sharply to VND47 billion (about US$2 million) in the third quarter and VND146 billion (US$6.4 million) in the first nine months of 2017. In the same period last year, the company earned VND241 billion (US$10.6 million) of after tax profit.
It is noteworthy that Vinasun's operating profit fell sharply while its cost of sales and administrative expenses decreased slightly.
Vinasun's stocks have nearly halved its market price since the beginning of the year and are currently traded at VND17,500 (US$0.77) per share.
For Koen Soenens, Sales and Marketing Director at DEEP C, empathy is a compass that guides major deals, the way a leader builds a team, and the ambition to create a sustainable industrial zone that carries a Vietnamese identity.
Taseco Land has shifted its listing to HOSE and introduced a new upward-pointing arrow logo - a visual statement of its strategy to raise capital, expand its land bank, and strengthen its standing in Vietnam’s real estate sector
Located in the heart of Ho Chi Minh City, SAP Labs Vietnam is the second SAP Labs Network hub in Southeast Asia, following Singapore and is one of 20 countries that have SAP Labs globally.
A new partnership between EY and the Vietnam-Singapore Board Forum (VSBF) is set to strengthen ESG capabilities for Vietnamese businesses, helping shape more sustainable business models.
With strategic deals and strong policy alignment from the Vietnamese government, Excelerate Energy aims to anchor Vietnam’s LNG ambitions in the region.
