Vietnam's Richest Man vs. Grab: Southeast Asia's Ride-Hailing King Defends Its Turf
The Ten-Year King Falls for the First Time
In Q1 2025, Vietnam's ride-hailing market saw a historic shift. According to market research firm Mordor Intelligence, Xanh SM took the top spot with a 39.85% market share, pushing Grab into second place at 35.57%. It is the first time Grab has lost its market lead since entering Vietnam in 2014.
The challenger, Xanh SM, is no ordinary startup.
The company is backed by Vietnam's richest man, Phạm Nhật Vượng, founder of Vingroup — the country's largest private conglomerate — with a net worth exceeding USD 24.7 billion, making him Southeast Asia's second-wealthiest individual.
Phạm Nhật Vượng's ambitions extend beyond Vietnam. Xanh SM plans to expand into three to four more Southeast Asian countries by the end of 2025, taking the fight directly onto Grab's home turf.
A Rapid Rise from Nowhere
Founded in March 2023, Xanh SM focuses on electric taxis and electric motorbikes, all using vehicles produced by Vingroup's EV arm, VinFast. Within five months of launch, the platform attracted 6 million users. Within seven months, it had climbed to second place in market share.
The rise was swift — but expensive.
Industry analysts say Xanh SM has been pricing rides below cost, effectively buying market share. A Q&Me survey found 83% of users were satisfied with Xanh SM's service, edging out Grab's 80%.
Electric vehicles have also become a differentiator. In a Vietnamese market with growing environmental awareness, Xanh SM's green image has drawn a large base of younger users.
Grab's Vietnam Report Card
Despite losing market share, Grab's Vietnam revenue hit a new high.
Revenue reached USD 228 million (roughly VND 570 billion) in 2024, up 23% year-on-year. But growth has slowed sharply — it ran at 70% between 2022 and 2023. Vietnam now accounts for around 8% of Grab's global revenue.
On brand usage, Grab still leads.
A Rakuten Insight survey found 55% of Vietnamese users rely on Grab most often, compared to 32% for Xanh SM and 24% for Be. Grab's edge lies in its super-app ecosystem — ride-hailing, food delivery, and payments in one place — something a transport-focused Xanh SM cannot replicate quickly.
Food delivery is Grab's strongest moat. GrabFood holds a 50.6% share and leads the market, with ShopeeFood at 41.7%. Still, Xanh SM entered the space in May 2025 with its "Xanh SM Ngon" delivery service.
Three-Way Race: Be Fights Back
Vietnam's ride-hailing market is not just a two-horse race between Grab and Xanh SM. Local startup Be is also gaining ground fast.
Founded in 2018, Be competes on price. Some 24% of its users choose Be for cheaper fares, and 23% cite promotional deals. In November 2025, Be announced it had turned EBITDA-positive for the first time — making it the first profitable local ride-hailing operator in Vietnam.
On driver count, Be leads with 400,000 drivers, ahead of Grab's roughly 300,000 and Xanh SM's 90,000. European ride-hailing giant Bolt is also reported to be preparing a Vietnam entry in early 2025, which will heat up competition further.
Grab Hits Back
Facing pressure from local rivals, Grab is not standing still.
Expanding coverage | In 2025, Grab added nine northern provinces, bringing its total coverage to 50 provinces and cities. In new markets, GrabBike offers a first-ride promotion at VND 6,000 (about USD 0.24), targeting smaller cities.
Deepening government ties | In December 2025, Grab signed a cooperation agreement with TP. Ho Chi Minh City's tourism authority, integrating tourist maps and attraction packages into the app while supporting restaurant digitalisation. Similar deals had already been struck with Hue, Da Nang, and Hai Phong.
AI investment | In April 2025, Grab launched two AI tools: "AI Merchant Assistant" for business insights, and "AI Driver Companion" to help drivers predict demand hotspots. CEO Anthony Tan has made clear that AI is central to Grab's long-term strategy in Vietnam.
Who Wins This War?
In the short term, Xanh SM's cash-burn strategy is not sustainable. Subsidised pricing must eventually give way to commercial reality, and Grab's diversified services and technology track record are durable advantages.
But Phạm Nhật Vượng is no ordinary opponent.
Vingroup controls VinFast EVs, Vinhomes real estate, and Vinmec healthcare — giving it formidable resource integration capacity. If Xanh SM can survive the burn phase and successfully expand across Southeast Asia, Grab's regional dominance will face a real test.
Vietnam's ride-hailing market is projected to grow from USD 1.05 billion in 2025 to USD 2.56 billion by 2030, a compound annual growth rate of 19.5%.
The prize is large enough for everyone. But who claims the biggest share will come down to who can outlast the others in a long fight.
