FastGo, a Vietnamese ride-hailing app, plans to launch in Singapore next month as it looks to expand in Southeast Asia. Drivers can register with FastGo from 1 April, and customers will be able to book rides from 30 April. The entry of FastGo into the Lion City will make the ride-hailing industry more competitive as it is already saturated with ride-hailing giant Grab, Indonesia’s Gojek, Ryde and Tada.
FastGo, part of technology start-up NextTech Group, launched its ride-hailing service in Vietnam in June 2018 after Uber withdrew from the region. It now has approximately 60,000 driver partners in 10 provinces and cities across the country.
After securing an undisclosed sum in a Series A investment from venture capital platform, VinaCapital Ventures, in August 2018, FastGo plans to raise another US$50 million in its Series B investment round over the subsequent few months.
Singapore is the third country for FastGo after Vietnam and Myanmar. The startup plans to enter Indonesia next via Jakarta, followed by Thailand and then the Philippines. Although Grab and Go-Jek dominate the Southeast Asian ride-hailing sector, FastGo has strategic partners, networks and relevant strategies for the region.
Unlike other ride-hailing apps, FastGo will charge its driver-partners a fixed daily subscription fee instead of collecting commission fees. It expects to charge a fee of below US$5 (S$6.80) if a driver’s income exceeds US$30 (S$40.80) a day, and there will be no service fee charged if the driver makes less than that. This strategy will allow it to attract driver-partners and customers at a lower cost.
There is no surcharge during peak hours, and the app allows the customers to offer tips when booking a ride, or opt for priority services.
“Despite of being a follower, FastGo’s model brings the best economic benefit to the drivers and customers. Any FastGo ride will always be cheaper than the others.”
Nguyen Huu Tuat, Founder & Chairman of FastGo