Vietnam Ride-Hailing Platforms Vie for Drivers with Diverse Revenue Sharing Models

In Vietnam's ride-hailing market, platforms like Grab, Be, and GreenSM are employing distinct strategies for revenue sharing with their drivers, leading to varied driver experiences and market competition. Grab has recently faced protests from some drivers over its "flexible app usage fee" policy. This dynamic pricing mechanism, which adjusts based on trip specifics, time of day, and operational factors, has reduced drivers' actual earnings to between 50-75%, down from a previous range of 67-73%. In contrast, Be Group and GreenSM have adopted fixed revenue-sharing models. Be Group maintains a stable share for drivers at 63.6% in Hanoi and 69.4% in Ho Chi Minh City since 2024. GreenSM offers up to 90% revenue sharing for two-wheeled vehicles and 85% for four-wheeled vehicles (excluding VAT), with actual driver take-home rates ranging from 73% to 83%. GreenSM also offers a fixed monthly salary of VND 4.1-5.3 million (approximately $160-$205 USD) plus up to 60% revenue sharing for drivers operating company-owned four-wheeled vehicles. An VnExpress survey of 26 trips between September 10-12 indicated that Grab drivers' average take-home rate was around 64.6% for two-wheelers and 65.6% for four-wheelers. Grab declined to provide further details on its flexible revenue-sharing mechanism. Ride-hailing platforms retain a portion of fares as "discounts" or "commissions" to cover operational costs, technological upgrades, and taxes. However, the calculation methods differ. Grab applies 13 types of fees and surcharges, while GreenSM and Be Group use 5-6. Notably, certain fees like insurance and carbon offsets are not included in Grab's revenue share with drivers, potentially reducing earnings significantly on short trips. Experts suggest drivers prioritize net income and predictability, while platforms need revenue for system maintenance and competitiveness. Be Group emphasizes that drivers, facing fixed monthly expenses like rent and tuition, require predictable income streams. Globally, platforms like Uber and DiDi use dynamic pricing, while markets like Indonesia have implemented discount caps (e.g., 8% for Grab and Gojek's two-wheelers). In the US, Lyft publicly caps fees at 30% monthly, and Massachusetts mandates minimum earnings for Uber and Lyft drivers. Singapore requires platforms to provide accident insurance, contribute to pension funds, and allow driver associations to negotiate terms. Vietnam's ride-hailing market is projected to reach $1.2 billion by 2025, according to Euromonitor International. GreenSM currently holds a 46.4% market share, surpassing Grab. Experts advocate for greater transparency from all platforms regarding fare calculations, fees, and driver payouts. Be Group proposes industry-wide standardized metrics for calculating driver compensation and calls for platforms to disclose the full cost structure of each trip. Last week, the National Competition Commission (under the Ministry of Industry and Trade) requested information from ride-hailing platforms concerning their pricing policies, fees, discounts, and deductions for both customers and drivers. Source: VnExpress