Vietnam taxi giant Vinasun’s 2024 net profit drops by 45% amid tough competition

Vinasun, a major taxi operator based in Ho Chi Minh City, reported a net profit of VND84 billion ($3.35 million) in 2024, down 45% year-on-year due to increased competition.

According to its 2024 earnings report, Vinasun (HoSE: VNS) reported consolidated revenue of over VND1 trillion ($39.87 million) last year, down 18% year-on-year and 12% below its target

Taxi services, which accounted for 84.5% of total revenue, declined 17% year-on-year, while financial income dropped by more than half to VND15 billion ($598,090).

As a result, 2024 marked the second consecutive year of declining revenue and profit for Vinasun.

The company’s earnings have been impacted by fierce competition in the taxi and ride-hailing market, which is crowded with players such as Grab, Be, and most notably, Green SM Taxi (GSM) – an all-electric taxi service owned by Vingroup chairman Pham Nhat Vuong.

At Vinasun’s 2024 AGM, deputy general director Tran Anh Minh acknowledged that the company’s market share has been affected by the rise of GSM, weakening demand, and increased competition from both local and overseas rivals.

As a result, Vinasun’s fleet stood at 2,590 vehicles by the end of 2024, a significant drop from its peak of 6,141 in 2016.

As of end-2024, Vinasun’s total assets reached VND1.9 trillion ($75.76 million), up 12% from the beginning of the year.

According to a report by Motor Intelligence, in the fourth quarter of 2024, GSM led Vietnam’s online ride-hailing market with a 37.41% share, followed by Grab at 36.62%, while Vinasun held just 2.44%.

Amid the ongoing shift toward electric vehicles (EVs), Vinasun invested VND148 billion ($5.9 million) in upgrading its fleet, achieving only 22% of its 2024 goal of adding 700 Toyota hybrid cars. The company plans to introduce an additional 2,000 Toyota hybrid units this year.