Go-Bike increases fares above main rival GrabBike

14:56 | 17/05/2019

Go-Viet has issued the decision to adjust fares and apply flexible rates at peak hours and other special cases, effective from 12 PM, May 16.

go bike increases fares above main rival grabbike
Go-Bike now charges a higher fare than its direct rival GrabBike

Accordingly, the fares increased in comparison with the old rates and Go-Viet also started implementing the test of multiplying fares.

The new fare table of Go-Viet:

Service

Go-Bike

Go-Send

Go-Food (VND)

First 2km fare (VND)

12,000

15,000

10,000 (+ 10,000 surcharge)

Basic fare (VND per km) (from the 3rd km onwards)

4,000

4,000

3,000

The changes in Go-Bike fees are as follows:

Go-Bike service

First 2km fare (VND)

Basic fare (VND per km)

Old fare

10,000

3,600

Updated fare

12,000

4,000

It can be seen that the new price of Go-Bike service increased significantly, not just the decimal number. With the new change of price, Go-Viet rates is VND200 higher than the old fares of GrabBike (GrabBike just updated the new ones in February 2018).

Service

First 2km fare (VND)

From 3rd km onwards (VND per km)

Go-Bike

12,000

4,000

GrabBike (old fares)

12,000

3,800

Moreover, Go-Bike's new basic fare per kilometre is higher than new fares of GrabBike, which charges VND3,400 in the south, VND3,500 in the north and calculates according to the travel time after the first 2km. New fares are calculated as below:

Service

First 2km fare (VND)

From 3rd km onwards (VND per km)

Fares calculated according to travel time (after the first 2km)

Go-Bike

12,000

4,000

0

GrabBike (new fares)

12,000

3,400 (in the south)

3,500 (in the north)

350 per km

GrabBike has applied this calculating method for a long time, specifically the flexible price schedule as demand increases, based on region, time of day, and now Go-Viet also announced that they will also test the price multiplication feature same as GrabBike in peak hours or when demand for cars increases.

This fare increase is currently only applied to Go-Bike service in Hanoi. With Go-Food and Go-Send, the price is still kept. In Ho Chi Minh City, Go-Viet has not announced about this change yet.

Entering Vietnam on August 1, 2018 through Ho Chi Minh City, Go-Viet has been competing in the local motorcycle ride-hailing market mainly through price and by building up an image of a SEA start-up company challenging Grab.

At first, they "burned" money through launching a loud promotion campaign offering rides for only VND5,000 ($0.22) for eight kilometres and charging no commission for drivers. At the same time, the firm tried to tie its brand closer to the market by taking on the red of the Vietnamese flag, contrasting with the green of Grab.

Ha Vy

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