Ride-hailing service in Vietnam market and its impacts on travel behavior of local people

Traditional taxi companies have changed their business strategy since the launch of GrabCar, they have offered a taxi service that has better quality for the customer, or some [r]

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ACKNOWLEDGMENT

After years at the Vietnam-Japan university, I had many great experiences, new friends, helpful knowledge, and above all, I learned at the international study environment of the top university in Vietnam

First of all, I would like to express my endless thanks and gratefulness to my research supervisor Professor Hironori Kato and Doctor Phan Le Binh for his kind support and continuous advice during research time Their encouragement and comments had significantly enriched and improved my research process Without their motivation and instructions, my research would have been impossible to be done

Furthermore, from bottom of my heart, I would like to thanks Program Director of Infrastructure Engineering Program of Vietnam-Japan University (VJU), Prof Nguyen Dinh Duc who always has encouraged and deeply care about me;

As of last, my deepest thanks come to the rest of the teachers and staff of Vietnam Japan University Their kindly help and guidance has inspired me and helped me to overcome the challenges which I faced during the period of study at Vietnam Japan University

Although I tried to complete this research by all my effort, however, there are still many errors and shortcomings for many reasons I look forward to receiving comments and suggestions which could present me with new sources of inspiration as I develop in my ability to research and learn

Thank you sincerely!

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TABLE OF CONTENTS

ACKNOWLEDGMENT i

TABLE OF CONTENTS ii

LIST OF FIGURES iv

LIST OF TABLES v

LIST OF ABBREVIATIONS vi

ABSTRACT 1

CHAPTER 1. INTRODUCTION 2

CHAPTER 2. LITERATURE REVIEW 5

2.1. Grab company 5

2.2. Some key finding from studies about ride‐hailing service in South East Asia countries 6

2.3. Some key finding from studies about ride‐hailing service in developed countries 7

CHAPTER 3. METHODOLOGY 9

CHAPTER 4. INTRODUCING OF RHS, LEGAL MECHANISM AND CONTROVERSY IN OPERATION OF GRABCAR IN VIETNAM 10

4.1. The history of introducing RHS in Vietnam 10

4.2. Legal mechanism for operation of GrabCar service in Vietnam 11

4.3. Controversy among stakeholders regarding operation of GrabCar service 12

4.3.1. Lawsuit between traditional taxi and Grab 12

4.3.2. Opinions of stakeholders relating operation of GrabCar service in Vietnam 15

4.4. Conclusion 18

CHAPTER 5. THE IMPACT OF RHS ON LOCAL PEOPLE AND DYNAMIC MOVEMENTS OF RIDE‐ HAILING CAR 19

5.1. Survey description 19

5.1.1. Data collection by group discussion (qualitative interviews) 19

5.1.2. Data collection by Grab app 21

5.2. Group discussion (qualitative interviews) 25

5.2.1. Group discussion record 25

5.2.2. Key finding 33

5.3. Dynamic characteristic of RHS car 34

5.3.1. The fluctuation of the price over time 34

5.3.2. The relationship between the availability and the waiting time 49

5.3.3. The surge pricing 52

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REFERENCES 56

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LIST OF FIGURES

Page

Figure Traditional taxi usage change in last 12 month 3

Figure History of introducing RHS in Vietnam 11

Figure Allegation of Vinasun about operation of Grab 13

Figure Image of the interview at VJU 19

Figure The availability of ride-hailing car 21

Figure The waiting time and the price of trip 21

Figure The location of districts in the city 23

Figure The fluctuation of the price on weekdays in zone 35

Figure The fluctuation of the price on Saturday in zone 35

Figure 10 The fluctuation of the price on Sunday in zone 36

Figure 11 The fluctuation of the price on Monday and Wednesday in zone 40

Figure 12 The fluctuation of the price on Friday in zone 41

Figure 13 The fluctuation of the price on Saturday in zone 41

Figure 14 The fluctuation of the price on Sunday in zone 42

Figure 15 The fluctuation of the price in zone 48

Figure 16 The frequency of the availability in weekdays in zone 50

Figure 17 The frequency of the waiting time in weekdays in zone 50

Figure 18 The frequency of the availability in days of the week in zone 51

Figure 19 The frequency of the waiting time in days of the week in zone 51

Figure 20 The frequency of the waiting time at the peak-hour in zone 53

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LIST OF TABLES

Page

Table Information of plaintiff and defendant in lawsuit 12

Table The detailed information of survey days 22

Table The characteristic of zone 22

Table The O-D pair 23

Table The fluctuation of price between time group (21h-22h) and (19h-21h) 36 Table The fluctuation of price between time group (22h-23h10) and (23h10-24h) 38

Table The fluctuation of price between time group (7h-14h) and (14h-22h) 39

Table The fluctuation of price in zone 42

Table The fluctuation of price between time group (16h30-19h30) and (15h30-16h30) 43

Table 10 The fluctuation of price between time group (18h-19h) and (15h30-18h) 44

Table 11 The fluctuation of price between time group (22h-22h30) and (22h30-24h) 45

Table 12 The fluctuation of price between time group (21h-22h10) and (19h10-21h) 46

Table 13 The fluctuation of price in zone 48

Table 14 The regression statistics table displays the relationship between the availability and the waiting time of zone and zone 49

Table 15 The regression statistics table displays the relationship between the availability and the waiting time of zone 52

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LIST OF ABBREVIATIONS

RHS Ride-hailing service

RHCs Ride-hailing companies

RHAs Ride-hailing apps

ICT Information&Communication Technology

AI Artificial intelligence

MOT Ministry of Transport

CBD Central business district

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ABSTRACT

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CHAPTER INTRODUCTION

Ride-hailing also is known as technology taxi in Vietnam – is the act of requesting a ride from a private passenger vehicle by an app on a smartphone This type of system is built, managed, and operated by ride-hailing companies (RHCs), Grab (Malaysia), Uber (United States of American), or Gojek (Indonesia) are some well-known RHCs in South East Asia countries area These RHCs serve as the broker between the customer who has ride demand and the driver who possesses and operates his/her own private vehicle After launch, Ride-hailing service (RHS) has immediately redefined the individual public transport industry (taxi or motorcycle-taxi in some South East Asia countries such as Vietnam, Indonesia, Thailand, and Cambodia) with its user-friendly platform, which includes extra convenience, variety payment method, completed door-to-door service, maximal reduced waiting time

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traditional taxi service less frequently than a year ago (according to the survey of Asia Plus Inc in July 2017)

Figure Traditional taxi usage change in last 12 month (Source: Asia Plus Inc on July, 2017)

Currently, there is still no completed regulation for the operation of RHS in Vietnam Besides that, RHS also has been causing the big controversy among stakeholders regarding regulatory statutes imposed on its operation

The purpose of this study is to understand the history of introducing and the operation of RHS in Vietnam market as well as the reason of controversy based on the review of related websites, review of related laws, and statement of stakeholders about RHS Besides that, a group discussion is carried out with Grab’s user to evaluate qualitatively impacts of RHS on local people Finally, the research will evaluate the dynamic movements of hailing vehicles relied on data of the ride-hailing app (RHA) on Information & Communication Technology (ICT) devices – the smartphone Based on the background, objectives presented before, the research question this study pursues to answer is: What is the current problem of ride-hailing service?

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Chapter reviews previous researches in the literature to understand the research approach and how to find problems, thereby clarifying the research objectives in accordance with current studies

Chapter summarize the history of introducing RHS system into Vietnam; analyze the legal mechanism relating RHS; find out operation of Grab in Vietnam transport market as well as reaction among stakeholders regarding its operation, thereby clarifying reasons of controversy around this type of service

Chapter analyze the impacts of RHS on local people through group discussion; describe procedures to collect data by Grab app on the smartphone, thereby determining the dynamic movements mechanism of the ride-hailing vehicle

Chapter concludes the discussion and identify current problems which may have on RHS, thereby proposing appropriate policies

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CHAPTER LITERATURE REVIEW

2.1 Grab company

The initial idea for Grabtaxi started when classmate group of Anthony Tan visited Malaysia and complained about their terrible experiences in a local taxi The complaint from friends stimulated thoughts in Tan, he started thinking about what is the problem of the taxi service in Malaysia and how to could improve it After came back Harvard, Tan and his team built a business plan for application on the smartphone that offers available taxis around the location of passengers by using mapping and location-sharing (Phillip, 2014) With the feasibility and potential contributions of the project for solving social problems, it received a runner-up award at the Harvard Business School’s 2011 Business Plan Contest

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2.2 Some key finding from studies about ride-hailing service in South East Asia countries

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et al., 2019) The recent arrival of RHS might have altered the market for traditional paratransit services in Asian developing cities In particular, the current strength of motorcycle taxi is their provision of a good connectivity service, but if more RHS penetrate the market, motorcycle taxi operators will lose their market power – a case study in Bangkok (Phun et al., 2019)

2.3 Some key finding from studies about ride-hailing service in developed countries

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al., 2019) One potential long-term effect of RHS may be observed on the household vehicle ownership level; households that would have otherwise owned two or three vehicles may now function as effectively with only one vehicle, and utilize companies like Uber and Lyft for all other types of trips This is a significant shift in travel behavior of RHS’s user (Contreras & Paz, 2017) In Sao Paulo, Brazil, 83% of current e-hailing trips derived from trips that were previously made by traditional motorized private modes Total economic activity expands by 1.089% if average vehicle occupancy reaches passengers per trip and all motorized private trips are substituted by RHS (Haddad et al., 2019) RHS utilizes fleets of private cars and app technology, it operates between commercial and private services, they are partly outside the control of governments and, to some extent, contravene current regulations (Aarhaug & Olsen, 2018) Some major American cities have passed regulations that require RHCs to provide a list of drivers and share trip data with city officials By creating these requirements, city officials may be able to estimate how many ride-hailing trips are being made, and this can provide them with a better understanding of whether limiting the number of vehicles is an appropriate regulation (Beer et al., 2017)

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CHAPTER METHODOLOGY

To identify the process of introducing RHS in Vietnam and to analyze the legal mechanism relating to RHS operation, the research has reviewed the webpages and documents of regulation relating to the transport business in Vietnam Some webpages visited including the official website of Grab (Grab.com), international magazines such as Tech in Asia, Vicent wee, or local newspapers online such as Bnews, Tiasang Documents of regulation are referred to including Decision 24/QD-BGTVT which was promulgated by ministry of transport (MOT) and Decree 86/2014/ND-CP which was promulgated by Prime minister Besides that, aim to identify reaction among stakeholders regarding the RHS operation, statement of stakeholders such as transportation expert, regulator, representative of traditional

taxi company, representative of Grab, representative of transport

association/company will be collected through social media Some social media channels visited including Parliamentary television, VOV national traffic channel, local newspapers online such as Labor, DTInews, Vnexpress, Cafebiz, Vietnam news agency and the magazine online such as Thanh Nien

The research will carry out a qualitative interview to gather insight about the impacts of RHS on local people Questions that relate to trip purpose, time to use, usage characteristics, trip pattern, the travel behavior and perspective about issues of RHS, has been given for respondents in the interview process

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CHAPTER INTRODUCING OF RHS, LEGAL MECHANISM AND CONTROVERSY IN OPERATION OF GRABCAR IN VIETNAM

4.1 The history of introducing RHS in Vietnam

In February 2014, Grab is a Singapore-based technology company that offers ride-hailing service through its app in Singapore and neighboring Southeast-Asian nations In June 2012, "My Teksi" app was launched in Malaysia market (known as "GrabTaxi" in other countries) In 2013, GrabTaxi expanded to the Philippines, Singapore, and Thailand In 2014, GrabTaxi further continued its growth and expansion to new countries: first launching in Vietnam in February, and in Indonesia in June

In the period from 2014 to 2016, at the initial time in Vietnam transport market, Grab reached out directly to taxi drivers by signing them up at airports, hawker centers, taxi queues, and depots The company also educated taxi drivers on using the smartphone and their mobile app In November 2014, GrabTaxi launched its first GrabBike service in Ho Chi Minh City as a trial service By 2015, GrabBike's motorcycle service rides had spread throughout Vietnam

In 1/2016, Ministry of Transport (MOT) promulgated Decision No.24, permitted GrabCar service to deploy in cities, within years, from 01/2016 to 01/2018 cities in the pilot program of MOT according to Decision No.24 including Hanoi, Ho Chi Minh City, Da Nang, Khanh Hoa, Quang Ninh GrabCar has become the most popular one of the travel modes in the urban transport system

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Figure History of introducing RHS in Vietnam

4.2 Legal mechanism for operation of GrabCar service in Vietnam

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Decision No.24, the role of Grab in the pilot plan is only the connection application provider, and transport companies/cooperatives are the operators of GrabCar service Until now, the pilot plan is expired, policymakers, MOT and Vietnam government are building a new legal regulation that is more appropriate for the operation of GrabCar, however, they have met many difficulties due to the controversy around this new type of transport service

4.3 Controversy among stakeholders regarding operation of GrabCar service

4.3.1 Lawsuit between traditional taxi and Grab

After GrabCar service has been approved for its activities in Vietnam, it caused big controversy between traditional taxi company and RHC The lawsuit between a representative of the traditional taxi - Vinasun and Grab company is the peak point of controversy The main purpose of Vinasun in this lawsuit is to influence and pressure Vietnam government, aim to identify RHA suppliers that are taxi companies

Table Information of plaintiff and defendant in lawsuit

Plaintiff Vinasun Defendant Grab

Taxi group was established and developed in Vietnam

Leading technology company in

Southeast Asia region, a pioneer company in building the habit of moving by technology vehicle in Vietnam

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Vinasun allege that Grab took advantage of pilot activity to direct business, operate directly car driver, appoint who will pick up customer, decide fare, and adjust fare, collect money directly from customer, implement promotional programs, recruit directly car driver, make regulations to reward and punish car driver, connect with bank to help car driver could borrow 90% of car value, buy voluntary accident insurance for car driver and customer Vinasun claimed that Grab often offers promotional programs for customers and issues points to drivers to promote its transport service The ride-hailing firm’s activities, therefore, constitute a transport service by nature, not merely a technology service Grab also has exploited the lack of clear regulations for software-based transport services and offered “rampant” promotion deals and discounts, including “zero fee” trips, which was similar to the dumping of manufactured goods

Figure Allegation of Vinasun about operation of Grab

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discounting fare to bring more benefits for the customer? Has Vinasun ever organized a meeting to examine your service quality? Therefore, instead of blaming for impacts outside, Vinasun should look at oneself to could change and contribute many benefits for the customer, for industry 4.0

Remarkable events in the lawsuit:

 03/05/2017 Vinasun filed a lawsuit against Grab and Uber

 20/06/2017 The People's Court of Ho Chi Minh City confirmed the jurisdiction to settle the lawsuit

 07/08/2107 Vinasun adjusted the petition, took Uber out of the lawsuit

 10/08/2017 The People's Court of Ho Chi Minh City approved the adjustment of Vinasun's petition

 15/11/2017 Vinasun adjusted the petition, increasing the amount of damage (41.2VND billion)

 29/11/2017 The People's Court of Ho Chi Minh City approved the adjustment of Vinasun for the second time

 06/02/2018 The People's Court of Ho Chi Minh City opened court of the first instance

 04/05/2018 The Council asked stakeholder to suggest a list of damage inspection companies

 10/05/2018 Grab submitted list of international damage inspection companies to the Council

 30/05/2018 The Council appointed the Cuu Long Valuation Inspection Company to assess the damage (if any) of Vinasun

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 24/09/2018 The trial was delayed because Grab require that they need more time to study report

 17/10/2018 The third trial was opened

 29/10/2018 As expected, the verdict would be given and the trial would be finished However, the verdict has been adjourned until November 23 due to lack of concrete evidence and the appointed assessor, Cuu Long Valuation Inspection Company, was absent from the hearing sessions

 23/11/2018 The trial was suspended within weeks

 30/11/2018 Vinasun and Grab suggested the Council suspend the trial Vinasun and Grab want to reconcile with each other The Council approved the proposal of both

 26/12/2018 Mediation process failed The trial was open again

 28/12/2018 The verdict would be given The Council claimed that the operation of Grab is the taxi business, Grab violated Decree 86 and Decision No.24 of MOT, directly caused Vinasun’s losses However, Vinasun did not prove their damage is caused by only Grab Therefore, Grab must compensate 4.8 billion VND for Vinasun’s losses The Council also asked MOT to make an appropriate management mechanism for operation of Grab

4.3.2 Opinions of stakeholders relating operation of GrabCar service in Vietnam

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Dr.Chu Cong Minh - Lecturer of BACHKHOA university said: “The current regulations are extremely inadequate For instance, Grab cars are not required to stick the logo at the side, not have regulations for punishment So, management agency cannot control activities and amount of Grab cars The exploding of the number of Grab car break transportation planning of the city, prevent the development of public transportation vehicles”

“The ban on the activity of Grab will cause bad impacts on the economic aspect Not only Grab is damaged, but also car drivers will lose their main income Many Grab drivers borrowed money to buy a car, but now, they cannot use it for transport business and get into debt Taxi association in other countries also protest activities of Uber, Grab because they claim that Uber, Grab has many advantages in the competition which lead the unequal competition However, activities of Uber, Grab is not banned, we should learn the way of management of these countries”, according to Mrs.Pham Chi Lan - Economic expert

“New technology-based business model may not be encouraged, and subject to technical barriers, but it does not mean that this new business model is eliminated Apply type of taxi business for Grab is a serious mistake”, Mr.Nguyen Dinh Cung - Director of the central institute for economic management said

“Grab get 29,5% of trip cost However, they are not responsible for the safety of passenger and insurance coverage of driver and vehicle They operate activities of drivers but according to Decision No.24, Grab is only connection service supplier, it is not a taxi business” Mr.Truong Dinh Quy - Deputy General Director of Vinasun company said

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the type of taxi business for Grab The consequences will be extremely large”, Mr.Jerry Lim – CEO of Grab Vietnam said

According to Mr.Nguyen Van Thanh - Chairman of Vietnam Automobile Transportation Association, “Cannot manage Grab like traditional taxi It is necessary to build appropriate regulations for this new type of transport as well as remove the inadequacies in regulations of traditional taxi”

“In nature, the traditional taxi and GrabCar are the same However traditional taxi is under 13 regulations of the type of passenger transport business by Taxi, but GrabCar is not It can change the cost of trip, don’t need the permission of management agency GrabCar is under regulations that are very open Traditional taxi and GrabCar are same in nature and enter into a common transport market However, business conditions are not the same It creates an unfair business environment, cannot enhance competition among transport companies So, it can facilitate Grab company becoming a monopoly”, Mr.Ta Long Hi – Chairman of transport association Ho Chi Minh said

According to “The weird transformation of sharing economy in Vietnam” article of journalists Van Chuong - Ha Phuong: “Initial idea of Uber, Grab application base on sharing economy model People will share their idle car with others, restricting private vehicles in big cities Drivers can make more money, and passengers have more selection for journeys with cheap price However, these purposes are being changed, it is not sharing economy, Uber and Grab have become the main job with the appearance of thousands of professional drivers”

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4.4 Conclusion

The rapid development of Grab forces traditional taxi companies to have interactions to protect their own rights on the transport market The traditional taxi claim that the operation of Grab and taxi company are the same, however, business conditions of traditional taxi are more complicated than Grab so much So that, the competition between Grab and the traditional taxi on the transport market is unfair Traditional taxi companies/associations have asked management agencies to control and manage Grab as a taxi company, ensure an equal business environment for all Nonetheless, practically, Grab is only cooperating with partners including transport companies/cooperatives, in order to support car drivers to connect with customers more easily and conveniently The relationship of Grab and car drivers is relationship among partners, Grab does not own a vehicle or any driver Therefore, identifying Grab as a taxi company and applying regulations of taxi for Grab will lose the technological advantages of RHS as well as change the nature of enterprise

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CHAPTER THE IMPACT OF RHS ON LOCAL PEOPLE AND DYNAMIC MOVEMENTS OF RIDE-HAILING CAR

5.1 Survey description

5.1.1 Data collection by group discussion (qualitative interviews)

Aim to gather insight about the impacts of RHS on local people, a qualitative interviews was conducted with the support of Dr.Phan Le Binh and staff of Vietnam-Japan university (VJU) The qualitative interview was carried out on 24 May 2019 with the participation of respondents (3 female and male) who are the staff of VJU, in which, respondents use Grab frequently for their trips, respondent only uses Grab on some occasion; people in middle age (43 years old) and young people (28 years old) The interview was organized at VJU and took place within hour under the witness of supervisor Dr.Phan Le Binh

Figure Image of the interview at VJU

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perspective about relevant issues In the interview process, sub-questions may arise continuously by the reciprocal interaction between the interviewer and respondents

In order to avoid bias in the qualitative interview, keep the question simple and not use questions that can lead the participant to respond in favor of a particular assumption For instance, instead of using the question: “Do you think that the price of Grab in bad weather or the peak-hour is very high?”, use another question: “How you assess about price calculation mechanism of Grab in some special situations such as bad weather or the peak-hour?”

Main questions which are given in the interview are listed below:

 What is your trip purpose when using Grab service?

 Does everyone use Grab every day?

 After Grab appears in Vietnam, you still use traditional taxi or not?

 Which time you use Grab during the day? Which day of the week?

 What are the important factors when you choose Grab?

 How does your purchase demand change after Grab appeared in the market? Does it stimulate your purchase demand or not?

 After using Grab, how does your travel expense change?

 How you assess about price calculation mechanism of Grab in some special situations such as bad weather or the peak-hour?

 How you think about the waiting time when using Grab in peak hours? And you can accept how long is waiting time?

 Does everyone use Grab as a paratransit mode?

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5.1.2 Data collection by Grab app

The survey was conducted by collecting data of dynamic movements of ride-hailing vehicles on the specific journey (O-D) through the Grab app on the smartphone Data can gather from vehicle booking times on the app including availability of ride-hailing vehicles, price of each trip, and the waiting time over period of time in day The survey aims to examine the fluctuation of price over time as well as the relationship between the availability and the waiting time, thereby clarifying why the surge pricing always happens in bad conditions such as the peak-hour or rainy day

Figure The availability of ride-hailing car

Figure The waiting time and the price of trip

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collected, because the fluctuation of the price depends on the weather (base on the result of the qualitative interview) The detailed information of survey days are listed below:

Table The detailed information of survey days

Day of week Survey day Temperature Precipitation

Monday 05/13/2019 29.4°C -

Wednesday 05/15/2019 30.8°C 1.4mm/day

Friday 05/17/2019 33.3°C -

Saturday 06/08/2019 34.7°C -

Sunday 05/19/2019 34.7°C -

The available data on Grab app were collected in each specific zone Zone are suggested by geographical location and typical characteristic of each area Hoan Kiem district is representative of zone Hoan Kiem is the urban core of Hanoi city, local people call Hoan Kiem region is the central business district (CBD) of the city because a large number of agencies, offices, commercial complex concentrated here Zone includes districts which are Dong Da and Thanh Xuan In these districts, the number of agencies and offices and the number of households are similar Bac Tu Liem district is a representative selection for zone Bac Tu Liem is the suburb district of the city, it is a major residential area, there are not too many agencies, offices or commercial complex here

Table The characteristic of zone

Zone District The characteristic of zone

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2 Dong Da + Thanh Xuan Agency/office + resident area

3 Bac Tu Liem Resident area

Figure The location of districts in the city

The O-D pairs on each zone are fixed and set on the principle: Origin is in residential area and destination is in the agency/office area The detailed O-D pairs on each zone are listed below

Table The O-D pair

Zone Map The O-D pair

Zone

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1

Origin: 64 Nguyen Khiet

Destination: Hanoi Tower

2

Origin: Royal city

Destination: 278 Ton Duc Thang

3

Origin: 20 Phu Minh Road

Destination: Cau Dien Market

Origin Destination

Origin

Destination

Origin

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In order to avoid the bias of the survey result, not apply the promotion or the cashless payment for all trips Using promotion or cashless payment make the real price of trip decrease from 30.000VND to 50.000VND, it leads to the wrong results of monitoring the fluctuation of price over time Besides that, because the survey take place continuously within 24 hours, it requires at least people to take turns working on the cellphone (change the turn after hours working on the cellphone), avoid loss of data by subjective factors

5.2 Group discussion (qualitative interviews)

5.2.1 Group discussion record

Me: What is your trip purpose when using Grab service? Go to work, leisure, business, meeting, send-off/pick up family member, delivery or shopping, so on?

Mrs.Nhu: I use Grab for all purpose you said, but my major purpose when using Grab is to go to work and book vehicle to send-off/ pick up my children

Me: When Grab has not appeared in Vietnam yet, how did you send-off/pick up your children?

Mrs.Nhu: At that time, my children still were young, I took my children to school or learning center by myself

Me: Have you ever picked up/sent off your children in the working time when Grab has not appeared in Vietnam?

Mrs.Nhu: No, I have never At that time, my children didn’t have many extracurricular classes as now Now, my child is a senior pupil, his travel demand is very high, he must travel to many places for his extracurricular classes within one day, and I cannot pick up/send-off him like before

Me: You allow your child to travel by himself when how old he was?

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Mrs.Hien: In my point of view, Grab is the most intelligent and civilized technology-based transport service ever before The first time Grab launched Vietnam transport market, they have brought so many promotions to the customer, this activity encouraged customer using their service Grab appeared and solved the problem of my family: who must send-off and pick up the children? Who must leave office sooner to send-off and pick up them, me or my husband? One of the features of Grab I like the most is I can track the journey on my smartphone, I know where my child move to, who they accompany and name of driver, some parents even allow their daughter to use Grabcar at late hours (from 21h-22h) by its tracking function, I never dare to use traditional motorcycle-taxi (xe om) to send off/pick up my children before, this type of service make me not feel assured, I feel not comfortable because I don’t know how much the price is from A to B to bargain with driver When Grab has launched, besides using Grabcar, I also use Grabbike for picking up and sending-off my children by its advantages such as saving travel expenses, send-off/pick up door to door (*) In the half of the first year of using Grab, my travel expense by using Grab was very low, about 50.000VND/month (250Yen/month), Grab has offered promotions constantly such as give trips with 30.000VND/trip, the price of trip from my home to office or shopping mall is about 27.000VND, and I didn’t have to pay any fee for my trip To summarize, my major purposes of using Grab are to send off /pick up children, sometimes go to work and delivery

(*) In some case, the car cannot approach door to door due to poor infrastructure condition in Hanoi

Mrs.Van: My major purpose is to go to work, delivery I also usually use another service of Grab - Grabfood

Me: How long everyone has used Grab?

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Mrs.Van: I also have used Grab about years

Me: Does everyone use Grab every day?

Mrs.Hien: Almost like that

Mrs.Van: If I miss the bus, I will use Grab to go to work

Me: I realized that the main purpose of using Grab of everyone is the same However, from the opinion of Mrs.Hien, I see one of reason make everyone like using Grab is Grab have much promotion, assume that Grab doesn’t give any promotions, does everyone still use this service or not?

Mrs.Hien: I still use because if I don’t use, no one sends off/picks up my children Recently, I don’t get any promotions of Grab, however, I still use it due to the necessary demand of my own and my children

Mrs.Nhu: With myself, I only use Grabcar service, don’t use Grabbike I have ever tried using Grabbike service once time, I realized this type of service isn’t professional, lack of safety, all people can become Grabbike driver with one motorcycle and one smartphone, I never use Grabbike for trips of my children

Me: In nature, Grabbike and traditional motorcycle-taxi (xe om) are the same, the basic difference is the technology application of Grabbike in connecting with the customer And another question, after Grab appears in Vietnam, you still use traditional taxi or not?

Mrs.Hien: I nearly don’t use the traditional taxi, if I cannot book Grabcar, I will prioritize using my private vehicle or walking

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book a vehicle and wait, I will choose taxis which are available on the road Traditional taxi is still very convenient in some case

Mrs.Van: I still use both, when I see the price of Grab is so high and I feel that I can not accept, I will choose the traditional taxi The price of taxi is more expensive than the price of Grab with promotion but cheaper than in peak hour

Me: Which time you use Grab during the day? Which day of the week?

Mrs.Hien: It depends on the learning schedule of children And I also often use Grab on weekend evenings for leisure purpose or visiting relatives

Me: What are the important factors when you choose Grab?

Mrs.Nhu: Firstly, I mustn’t wonder whether the driver has detoured? I know the price before booking, if I feel happy, and willing to pay for this price, I will book, the decision is mine Secondly, I know the information, name and appearance of the driver before getting on the car, it makes me feel more assured

Mrs.Hien: Grab has built one smart and modern app Firstly, it helps me track the journey of my children through the app Next, instruction on the app is very careful and exact, I can see clearly the name of lane, name of alley and places around my origin and destination on the app Thirdly, Grab app rarely be lagged and data display on the app such as waiting time, availability, the location of driver, the movement of vehicle are estimated very accurately Accuracy of these data has helped me so much in booking vehicle, for example, base on availability car data on app, if around my location, there are 8-10 available vehicles, I will book vehicle whenever I want, however, if there are only 1-2 vehicles, I have to book vehicle before about minutes

Me: Does everyone care the about the payment method when using Grab to send off/pick up children?

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Mrs.Nhu: With the cashless payment method, we only need recharging money into e-wallet to pay for the trip and our children also don’t need to bring too much cash in hand Problems which we concern before are no longer exist

Mrs.Hien: One more outstanding feature of Grab is that I can rate the service attitude of car driver after each trip, or send directly my feedback to the customer service department of Grab Drivers who are judged to have the poor service attitude will be punished by Grab, and the highest penalty is to stop providing the customer connection app of Grab for driver

Me: Before Grab has appeared in Vietnam, if you want to buy something, you must come to the store where it has goods you need, buy and bring it back However, currently, Grab can help you that, it will deliver goods which you buy to your place And my question is that How does your purchase demand change after Grab appeared in the market? Does it stimulate your purchase demand or not?

Mrs.Hien: The launch of Grab doesn’t impact on my purchase demand I use Grab for delivery purpose when I need sending something to my relatives, friends or partners

Mrs.Van: My purchase demand is higher than before, especially, after Grab has launched Grab food service My spouse often this type of service to buy snack foods and drinks every evening

Mrs.Nhu: Grab doesn’t impact on my purchase demand If I want to eat or drink something, I prefer going outside rather than order food and drinks to home

Me: After using Grab, how does your travel expense change?

(36)

Me: How you assess about price calculation mechanism of Grab in some special situations such as bad weather or the peak-hour?

Mrs.Nhu: In the off-peak hour, a distance of km, it only costs about 30.000VND However, the rainy day, the price is about 120.000, more than times

Mrs.Hien: Not only the rainy day but also the peak hour, weekends, holiday, the price of Grab is more than about 3-4 times Meanwhile, Be - one other RHS supplier always keeps their price in every period of time, every occasion, however, Bee doesn’t have many promotions like Grab

Mrs.Nhu: When surge pricing happens, after about 1-2 minutes I book once again, the price is 100.000VND down to 30.000VND

Mrs.Van: At peak hour, the price of Grab fluctuates wildly, it costs about 128.000VND from my house to VJU Meanwhile, in normal conditions, the price is only about 70.000VND Therefore, at that moment, I will use traditional taxi, the price is about 100.000VND

Me: Currently, there is no management mechanism to control the price of Grab, what you when surge pricing happens?

Mr.Tan: I will compare between the price of Grab and price of other RHS company, which company offers the most suitable price which makes me satisfy I will choose If the price of all is equally expensive, I will choose traditional taxi, the price of traditional doesn’t change over time

Mrs.Hien: So I am If I’m not too hurry, I will wait until the price go down No one chooses an expensive price, while the actual price is less than 3-4 times

(37)

to the customer, assume that the car booking app of that companies is as good as Grab app Do you think you will use the traditional taxi back?

Mrs.Nhu: I’m willing to use the traditional taxi However, as I know, currently, booking app of traditional taxi companies is still not completed like Grab’s app and the number of car of traditional taxi companies is very few And traditional taxi companies also don’t apply the cashless payment method for trips

Mrs.Van: I think traditional taxi companies must build an app which is better than Grab’s app and have marketing strategies for their app Currently, Grab app has been very popular in car booking market and most people are acquainted with using this app I don’t think people will change their habit, using another car booking app while Grab app is still good enough

Me: Traditional taxi companies and transport associations claim that Grab company must be managed and controlled as traditional taxi because its operation in Vietnam transport market is the same with the operation of taxi company How you think about this?

Mrs.Hien: From point of view of the user, I think that customer only cares about benefits which they can get from service suppliers Which company can bring more benefits to customer such as more promotions, the better price, more convenience, they will choose using service of that company Within years, Grab has supplied a perfect type of service to the customer, and people also love using this type of service for their trips I think that traditional taxi companies should change their business strategies, improve quality of service, develop technology application to be able to compete with new modes in the transport market

(38)

Mrs.Hien: Waiting time in peak hour is longer than normal hours, maximum of waiting time is 15 minutes It also depends on your location, if there are few cars around your location, the waiting time also is longer

Mrs.Van: In peak hours, some car drivers don’t want to pick up customers, therefore it’s very difficult to catch a car at this moment, so the waiting time will be longer

Me: You can accept how long is waiting time?

Mrs.Hien: Not over 15 minutes

Mrs.Nhu: It depends on the trip purpose If I’m not hurrying, 15 minutes or more are accepted However, if I must move immediately, I only wait within 5-10 minutes

Mrs.Van: When I go to work in the morning, if the waiting time is more than minutes, I will cancel

Me: Does everyone use Grab as a paratransit mode? For example, the distance between your home and bus station is far Before Grab has appeared, you must walk to the bus station But now, you can use Grab to take you to come to the bus station

(39)

(*) In Hanoi, some families don’t have the parking lot in their house, therefore they must park their car at the car parking zone and pay a fee every month

Me: Final question, does Grab change your trip pattern or not? For example, assume that your main mode which is used to commute is bus, before the launch of Grab, maybe you only come to office from home and go back home from office, but now, when Grab appear, on road to go back home, you visit somewhere, after that you will use Grab to come back home

Mrs.Van: Yes, after the launch of Grab, on the road from VJU to my house, I usually visit Vinmart to shopping, after that, I will catch Grab to go home I don’t need to be worry that I must walk to home O-D can be changed more flexibly

Me: Thank everyone so much for cooperation!

5.2.2 Key finding

Less accompanying trips of parents with their children: People usually use Grab for sending off/picking up their children due to its outstanding features such as tracking journey on the app, cashless payment method, knowing price in advance, knowing car driver information As the Grab system enables the parents to capture the real-time location of car, it motivates them to send their children alone to the school This reduces the burden of parents to accompany their children and enables to allocate their saved time to other activities

(40)

Availability of the traditional taxi and other RHS: There are not only Grab, traditional taxi, but also other RHCs in Vietnam transport market The traditional taxi/other RHCs not give too many promotion, however, their price does not change abruptly over time People use very flexibly between Grab, traditional taxis and other RHS Although Grab always is prioritized using, when surge pricing happens, people will choose a traditional taxi/other RHS which offers a more suitable price

Paratransit mode for public transport user: People use Grab as a paratransit vehicle If using Grab for a long distance, travel expense is very expensive Therefore, people have chosen a more optimal solution, they use Grab take them to the bus station, the BRT station From here, they will use bus, BRT to come to their destination The travel expense will be much cheaper

The surge pricing in bad conditions: Due to high using demand, the price of Grab in peak hour, bad weather (rainy day or so hot), or at the weekend is more expensive than about 3-4 times, waiting time is slightly longer and availability is lower

5.3 Dynamic characteristic of RHS car

5.3.1 The fluctuation of the price over time

(41)

 Zone

Figure The fluctuation of the price on weekdays in zone

Figure The fluctuation of the price on Saturday in zone

10 20 30 40 50 60 70

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

The

pr

ic

e (VND)

Time (minutes)

The fluctuation of the prcice on weekdays

Monday Wednesday Friday

10 20 30 40 50 60 70 80 90 100

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

The

pri

ce (

VND)

Time (minutes)

(42)

Figure 10 The fluctuation of the price on Sunday in zone

Diagrams show that there is not the great fluctuation in the price on weekdays in zone The fluctuation of price from 21h to 23h10 on Saturday and from 7h to 14h on Sunday are significant The independent-samples T test is used to verify the fluctuation of price in these periods of time

On Saturday, the period from 21h to 23h10 will be divided into part including (21h-22h) and (22h-23h10) First part, the period from 21h to 22h will be compared with the period from 19h to 21h The second, the period from 22h to 23h10 will be compared with the period from 23h10 to 24h The result are shown below

Table The fluctuation of price between time group (21h-22h) and (6h-21h)

Group Statistics

VAR00002 N Mean Std Deviation Std Error

Mean

VAR00001 21h-22h 13 42.8462 7.64685 2.12086

10 20 30 40 50 60 70 80

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

T

h

e p

rice (V

ND

)

Time (minutes)

(43)

6h-21h 181 36.2928 1.91990 14270

Independent Samples Test

Levene's Test for Equality of Variances

t-test for Equality of Means

F Sig t df

VAR00001

Equal variances

assumed 85.528 000 8.559 192

Equal variances not

assumed 3.083 12.109

t-test for Equality of Means Sig

(2-tailed)

Mean Difference

Std Error Difference

95% Confidence

Interval of the Difference

Lower

VAR00001

Equal variances

assumed 000 6.55334 76566 5.04316

Equal variances not

assumed 009 6.55334 2.12565 1.92656

(44)

Table The fluctuation of price between time group (22h-23h10) and (23h10-24h)

Mean

VAR00001 22h-23h10 14 67.7857 14.80737 3.95744

23h10-24h 10 57.0000 00000 00000

F Sig t df

VAR00001

Equal variances

assumed 15.390 001 2.289 22

Equal variances not

assumed 2.725 13.000

(2-tailed)

Mean Difference

95% Confidence

Lower

VAR00001 Equal variances

(45)

Equal variances not

assumed 017 10.78571 3.95744 2.23619

There is the great fluctuation in the price at the period from 22h to 23h10 (Std= 14.81) on Saturday as well as the significant difference of mean between time groups (Sig.= 0.017 <0.05) The price of trip at the period from 22h-23h10 is more expensive than the real price about 10.000 VND

On Sunday, the period from 7h to 14h will be compared with the period from 14h to 22h The result are shown below

Table The fluctuation of price between time group (7h-14h) and (14h-22h)

Mean

VAR00001 1.00 85 38.1647 6.71503 72835

2.00 97 37.3196 3.00536 30515

F Sig t df

VAR00001

Equal variances

assumed 21.826 000 1.119 180

Equal variances not

assumed 1.070 113.030

(46)

Sig (2-tailed)

Mean Difference

95% Confidence

Lower

VAR00001

Equal variances

assumed 265 84512 75553 -.64572

Equal variances not

assumed 287 84512 78969 -.71939

On Sunday, the fluctuation of the price happens all day However, the price in the period from 7h to 14h is fluctuated more greatly than the price in the period from 14h to 22h (Std 6.71 > 3.01) However, the difference in mean between time groups is not significant (Sig.= 0.287 >0.05)

 Zone

Figure 11 The fluctuation of the price on Monday and Wednesday in zone

0 20 40 60 80 100 120 140

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

The

pr

ic

e (VND)

Time (minutes)

The fluctuation of the price on Monday and Wednesday

(47)

Figure 12 The fluctuation of the price on Friday in zone

Figure 13 The fluctuation of the price on Saturday in zone

0 20 40 60 80 100 120 140

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

Th

e p

ric

e (VN

D

)

Time (minutes)

The fluctuation of the price on Friday

0 20 40 60 80 100 120

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

T

h

e p

rice (V

ND

)

Time (minutes)

(48)

Figure 14 The fluctuation of the price on Sunday in zone

Diagrams show that there is a great fluctuation in the price at the morning peak-hour (6h-9h), the night off the peak-hour (19h-22h) on Saturday, and the evening peak-hour (15h30-19h) on Sunday in zone The fluctuation of the price at the morning peak-hour happens all the day of the week (except Saturday)

Table The fluctuation of price in zone

The period

of time Day The average of price Standard deviation

6h-9h

Monday 54.81 19.24

Wednesday 63.16 27.79

Friday 63.11 24.49

Sunday 60.19 22.23

19h-22h Saturday 57.46 23.77

15h30-19h Sunday 49.30 16.89

There is a significant fluctuation in the price from 16h30 to 19h30 on Friday, and from 18h to 19h as well as from 22h to 22h30 on Saturday On Sunday, the great fluctuation of the price happens from 21h to 22h10

0 20 40 60 80 100 120

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

Th

e p

ric

e (VN

D

)

Time (minutes)

(49)

The independent-samples T test is used to verify the fluctuation of price over time On Friday, the period from 16h30 to 19h30 will be compared with the period from 15h30 to 16h30 The result are shown below

Table The fluctuation of price between time group (16h30-19h30) and (15h30-16h30)

Mean

VAR00001 15h30-16h30 13 43.6154 65044 18040

16h30-19h30 36 46.7500 6.20311 1.03385

F Sig t df

VAR00001

Equal variances

assumed 6.852 012 -1.806 47

Equal variances not

assumed -2.987 37.064

(2-tailed)

Mean Difference

95% Confidence

(50)

VAR00001

Equal variances

assumed 077 -3.13462 1.73535 -6.62569

Equal variances not

assumed 005 -3.13462 1.04947 -5.26093

There is the significant fluctuation in the price at the period from 16h30 to 19h30 (Std= 6.20) on Friday, as well as the significant difference of mean between time groups (Sig.= 0.005 <0.05)

On Saturday, the period from 18h to 19h will be compared with the period from 15h30 to 18h Next, the period from 22h to 22h30 will be compared with the period from 22h30 to 24h The result are shown below

Table 10 The fluctuation of price between time group (18h-19h) and (15h30-18h)

Mean

VAR00001 18h-19h 13 48.0769 7.02924 1.94956

15h30-18h 31 43.2258 99028 17786

F Sig t df

VAR00001

Equal variances

assumed 47.570 000 3.814 42

Equal variances not

(51)

(2-tailed)

Mean Difference

95% Confidence

Lower

VAR00001

Equal variances

assumed 000 4.85112 1.27193 2.28425

Equal variances not

assumed 029 4.85112 1.95766 59350

There is the significant fluctuation in the price at the period from 18h to 19h (Std= 7.03) on Saturday, as well as the significant difference of mean between time groups (Sig.= 0.029 <0.05)

Table 11 The fluctuation of price between time group (22h-22h30) and (22h30-24h)

Mean

VAR00001 22h-22h30 84.5714 21.61679 8.17038

22h30-24h 19 59.8947 3.90007 89474

(52)

VAR00001

Equal variances

assumed 51.596 000 4.929 24

Equal variances not

assumed 3.002 6.144

(2-tailed)

Mean Difference

95% Confidence

Lower

VAR00001

Equal variances

assumed 000 24.67669 5.00673 14.34330

Equal variances not

assumed 023 24.67669 8.21922 4.67905

There is the great fluctuation in the price at the period from 22h to 22h30 (Std= 21.62) on Saturday, as well as the significant difference of mean between time groups (Sig.= 0.23 >0.05)

On Sunday, the period from 21h to 22h10 will be compared with the period from 19h10 to 21h The result are shown below

Table 12 The fluctuation of price between time group (21h-22h10) and (19h10-21h)

Mean

VAR00001 21h-22h10 15 58.7333 21.72381 5.60906

(53)

F Sig t df

VAR00001

Equal variances

assumed 24.458 000 4.228 36

Equal variances not

assumed 3.392 14.033

(2-tailed)

Mean Difference

95% Confidence

Lower

VAR00001

Equal variances

assumed 000 19.03768 4.50246 9.90626

Equal variances not

assumed 004 19.03768 5.61239 7.00298

(54)

 Zone

Figure 15 The fluctuation of the price in zone

Diagram shows that, in zone 3, the price does not change too abruptly over time in the day

Table 13 The fluctuation of price in zone

The period of

time

The average of price Standard deviation

Mo We Fr Sa Su Mo We Fr Sa Su

0h-6h 59.92 61.66 61.22 60.00 60.40 2.16 0.48 2.45 0.00 2.35

6h-22h 40.66 40.34 39.38 41.01 39.53 1.68 1.75 1.89 1.97 1.51

22h-24h 60.52 59.84 58.04 60.04 58.52 0.51 4.41 1.02 1.02 0.51

0 20 40 60

0 120 240 360 480 600 720 840 960 1080 1200 1320 1440

T

he p

ric

e (VN

D

)

Time (minutes)

(55)

5.3.2 The relationship between the availability and the waiting time

A linear regression model is applied to determine the relationship between the availability and the waiting time, in which the availability is the independent variable and the change of the waiting time will depend on the change of the availability over time in the day

 Zone and Zone

Table 14 The regression statistics table displays the relationship between the availability and the waiting time of zone and zone

The period of time

Regression Statistics

Zone Zone

P-value R-square P-value R-square

Monday 2.74E-14 0.18 1.5E-22 0.28

Wednesday 5.86E-07 0.08 1.56E-08 0.11

Friday 1.27E-15 0.20 7.31E-11 0.14

Saturday 1.96E-57 0.59 0.89 7.09E-05

Sunday 6.97E-52 0.55 3.13E-10 0.13

(56)

Figure 16 The frequency of the availability in weekdays in zone

Figure 17 The frequency of the waiting time in weekdays in zone

0.12% 0.12% 0.81% 1.50% 1.73% 1.27% 3.92%

11.65% 78.89% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100 200 300 400 500 600 700 800

2 10 More

Fr

eq

ue

nc

y

The availability (the number of car)

8.42% 13.49% 71.51% 6.46% 0.12% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 100 200 300 400 500 600 700

1.5 More

Fr

eq

uency

(57)

Figure 18 The frequency of the availability in days of the week in zone

Figure 19 The frequency of the waiting time in days of the week in zone

Based on Figure.16;17;18;19, we can realize that in zone1 and zone 3, the available car which is 10 cars occupies the high frequency (78,89% in zone and 61.87% in zone 2) However, while in zone 1, the time which the customer must wait for a car is about minutes, the waiting time in zone is about 10.5 minutes In zone 3, the distance between GrabCar and the location of the customer is quite far, while the distance in zone is much shorter than Therefore, the waiting time

1.31% 2.63% 5.33% 4.71% 5.05% 4.43% 3.32% 3.88% 7.47% 61.87% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 100 200 300 400 500 600 700 800 900 1000

1 10 More

Fr

eq

uency

The availability (the number of car)

2.01% 0.62%1.59% 4.50%5.54% 10.87% 18.96% 31.49% 7.20%6.23%5.95% 2.63%1.94% 0.48% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 50 100 150 200 250 300 350 400 450 500

4 7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 15.5 16.5 More

Fr

eq

ue

nc

y

(58)

does not only depend on availability, but also depends on the distance between the vehicle and the customer

 Zone

Table 15 The regression statistics table displays the relationship between the availability and the waiting time of zone

The period of time Regression Statistics

P-value R-square

Monday 3.5E-97 0.78

Wednesday 1.9E-98 0.79

Friday 4E-103 0.80

Saturday 8.3E-84 0.73

Sunday 2.8E-88 0.75

The Table.17 shows result: In zone 2, the waiting time depends on the availability (R-square > 0.5) When the availability is low, the waiting time will be longer, and vice versa

5.3.3 The surge pricing

(59)

Figure 20 The frequency of the waiting time at the peak-hour in zone

At the peak-hour, the wait time always be from to minutes When bad conditions happen, demand for using GrabCar is higher, maybe demand will be greater than supply, and waiting time become longer Therefore, a potential assumption is given that algorithm of Grab application will automaticaly raise prices to balance between demand and supply (when the surge pricing happens, the customer will not choose GrabCar service for their trip and the demand for using service will reduce significantly), ensure the waiting time not to be too long

15.54% 25.00% 20.27% 18.92% 14.19% 6.08% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 10 15 20 25 30 35 40

1.5 More

Fr

eque

n

cy

(60)

CHAPTER DISCUSSION AND CONCLUSION

Ride-hailing service is a new travel mode in urban transport system in Vietnam However, it has spread rapidly and affect significantly to Vietnam transport market, especially the traditional taxi The appearance of RHS has redefined the taxi industry, Grab has transported tens of millions of passengers while the Government has not lost money to finance for development of this type of service, because it uses socialization source The relationship between Grab and the car driver is a partnership, it is not the relationship between boss and employee Grab does not possess and manage any car The success of RHS in transport market has implied that RHS conforms to the trend of the consumer in the technology era, as well as, indicated that some current business conditions of the traditional taxi service have been too old, too complicated and need to be removed

Ride-hailing service also has impacted significantly on the travel habit of local people After the launch of Grab, it make accompanying trips of parents with their children are less than before, people usually use Grab for sending off/picking up their children due to its outstanding features such as tracking journey on the app, cashless payment method, knowing price in advance, knowing car driver information Some people have used Grab replace the private vehicle to go to work because they prefer to be driven by someone rather than driving by themselves and the cheap expense People also have used it as a paratransit vehicle to take them to the bus/BRT station From here, people will use bus, BRT to come to their destination In this case, RHS has encouraged people using the public transportation vehicle

(61)

(19h-22h) and at night (22h-23h) when people have a high demand for leisure purpose and going back their home The research has shown that the waiting time for a GrabCar does not only depend on the number of the available car around but also depends on the distance between the vehicle and the customer Finding for the reason of the surge pricing at the bad conditions such as the peak-hour, the research proved that, at the peak-hour, the waiting time always be very short (about 2-4 minutes) Therefore, a potential assumption is given that the algorithm of Grab app automatically raises prices to balance between demand and supply because when bad conditions happen, demand for using GrabCar is higher, maybe demand will be greater than supply, and waiting time become longer If the demand and the supply are balanced, the short waiting time always be ensured

From all findings of this research, Grab is supplying an extremely useful RHS to the customer, has efficiently addressed the inadequacies of the current urban transportation system Besides that, the launch of Grab in Vietnam has forced the traditional taxi to change their business strategy, offer a better quality service to customer Grab also contribute to encouraging people using the public transportation vehicle and decreasing demand for using the private vehicle The fluctuation of price over time or the surge pricing does not affect negatively to the transport market and local people because Grab is not an only RHS supplier in the Vietnam market Besides the traditional taxi, there are also other RHS suppliers such as Be, GoViet, Fast-Go, etc People have many other options for their trip if the surge pricing happens, Grab cannot manipulate the Vietnam transport market However, there have been still no regulations for the operation of Grab or RHS in Vietnam, therefore building an appropriate legal mechanism for its operation is an urgent mission at now to manage and control efficiently this new type of service

(62)

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