Vietnam’s FastGo eyes US, Brazil expansion
Vietnamese ride-hailing company FastGo plans to enter the U.S. and Brazil this year as it seeks to quickly expand overseas. Its CEO Nguyen Huu Tuat said that he is keen to compete with other ride-hailing apps in foreign countries. “Our investors are located in the U.S. and Brazil, that’s why we have chosen those places as the next markets,” he said without disclosing who they are.
The announcement comes a month after it expanded into Myanmar. FastGo now has over 1,000 partner drivers in Yangon and Tuat wants to have 2 million users in Myanmar this year.
But the company wants to expand even faster to other markets this year, with Indonesia, where ride-hailing Go-Jek is based, being the first location.
“We plan to start operating in Jakarta in March, and will also expand to Singapore this year,” Tuat said.
The investors want the company to “go global as soon as possible,” he said to explain the rapid expansion plans.
The company hopes to raise $50 million in the second round by June this year possibly from investors in South Korea and the U.S., he said.
“Grab and Uber might have deep pockets, but FastGo wants to grab market share by offering better options to customers.”
FastGo does not collect commissions from drivers but instead charges them an amount of money if they earn a minimum amount per day. FastGo also claims to not increase fees during rush hour but allows users to tip drivers.
It became Vietnam’s first home-grown ride-hailing app last June and now has 40,000 drivers in 12 cities and provinces.
FastGo last August received $3 million from Vietnamese fund VinaCapital Ventures, according to reports.