Vietnamese platform FastGo expands to Myanmar
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FastGo, Vietnam’s first ride-hailing service, has kicked off operations in Myanmar as part of its Southeast Asia expansion plans. Its joint venture with Myanmarese conglomerate Asia Sun Group began offering services on December 28. CEO Nguyen Huu Tuat said at the launch that Myanmar is a promising market with the e-commerce, travel and retail sectors all growing rapidly. With a population of 50 million, transport demand in the country is expected to rise, he said.
FastGo targets major cities and provinces and expects to sign up two million users and 100,000 drivers.
It pursues the same business model as in Vietnam, only taking a fixed service cost from drivers and not commissions on each ride and guaranteeing them higher fares during rush hour and bad weather.
It allows users to tip drivers, and offers a priority service for certain customers.
Tuat said FastGo has tied up with Asia Sun because the group has experience in various sectors, deep pockets and an understanding of the local market and culture.
He expected the venture to benefit Myanmar’s digital economy.
FastGo was launched in Vietnam last June and now has over 40,000 partner drivers in 10 provinces and cities.
It aims to be more than just a ride hailing app, offering other services such as food delivery.
FastGo Vietnam Joint Stock Company was established in April 2018 with its headquarters in Hanoi. The company belongs to a wide network of services provided by Nextech, a leading tech firm in Vietnam.
The Nikkei Asian Review reported that the company hopes to make its service available in 20 cities in Vietnam and five other Southeast Asian markets, including the Philippines, Cambodia and Thailand, by the end of 2019.
Questions & Answers
Q.What is FastGo's intended target for user and driver sign-ups in Myanmar?
What is FastGo's intended target for user and driver sign-ups in Myanmar?
FastGo aims to sign up two million users and 100,000 drivers in Myanmar. They are targeting major cities and provinces within the country for their operations.
Q.How does FastGo's business model for drivers in Myanmar differ from a traditional commission-based model?
How does FastGo's business model for drivers in Myanmar differ from a traditional commission-based model?
FastGo takes a fixed service cost from drivers rather than commissions on each ride. This model also guarantees drivers higher fares during rush hour and periods of bad weather.
Q.What was the reasoning behind FastGo's partnership with Asia Sun Group for its Myanmar expansion?
What was the reasoning behind FastGo's partnership with Asia Sun Group for its Myanmar expansion?
FastGo chose Asia Sun Group due to its extensive experience across various sectors. The group also possesses significant financial resources and a strong understanding of the local market and culture.
Q.When was FastGo first launched in its home country, Vietnam?
When was FastGo first launched in its home country, Vietnam?
FastGo was launched in Vietnam in June of the previous year. Since then, it has expanded to include over 40,000 partner drivers across 10 provinces and cities.
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