Vinasun, the biggest taxi company in Vietnam, is set to launch a fleet of 500-700 luxury cars exclusively through its ride-hailing mobile app in an effort to compete with popular services Grab and Uber, local media reported.
The company, which unveiled its own hailing app a year ago, reportedly will outsource other transport businesses for the new fleet.
Deputy CEO Ta Long Hy was quoted as saying that customers can choose to book a ride with the new cars or Vinasun's regular cabs. The company's fleet had reportedly expanded to more than 5,200 by the end of last year.
Le Hoang Minh, vice director of Ho Chi Minh City's Department of Transport, said Vinasun has been licensed to start the new business model on a trial basis in eight cities and provinces, including HCMC and Da Nang.
At its shareholders' meeting in April, Vinasun forecast its net profit would fall 20 percent to VND264 billion (US$11.68 million) this year, citing high costs and harsh competition from Malaysian-owned startup GrabTaxi, now known as Grab, and the US-based service Uber.
The company saw a 5 percent profit increase last year, compare to 40 percent in 2014.