Singapore blockchain-based ride hailing platform MVL to drive into Vietnam in July

Singapore-based transportation startup MVLchain, which owns Grab-like platform MVL, will officially foray into the Vietnamese market in July this year targeting to attract 25 per cent of cars and motorcycles operating in the country to join this platform.

“MVLchain will introduce on-demand service after July. We start from Singapore and we need to prepare for local Vietnam laws,” Kay Woo, founder and CEO of MVL told DEALSTREETASIA in an interaction.

Founded in 2012 by a group of mostly Korean founders in New York, the company is now based in Singapore and operating in markets such as Korea, Taiwan, Hong Kong and Singapore via the Easi6 platform which provides reservation services to customers by its system of 25,000 vehicles.

MVL is targeting Vietnam as its main market of the company, said Woo. It is currently filing a legal entity in Vietnam as an IT company. The first driver recruitment will be held this month. If legal procedures are completed on schedule, the application will officially step into the market in July.

The model of ride-hailing platform MVL is similar Grab and Uber but its operation is based on blockchain technology which makes a difference compared to the two majors.

“MVL’s revenues will not come from the drivers’ commissions,” Woo told local media at an introduction conference on May 5 in Ho Chi Minh City, adding that the revenue to maintain the company’s operations is based on linking services with insurers, advertising sales and sales data to insurance companies and market research organizations.

Meanwhile, the Singapore-based startup will set up a reward mechanism for drivers which can be converted to token. The drivers can sell token on the electronic trading platform accepting it.

MVL is a new blockchain-based ecosystem for all vehicle-related services. Participants from automobile-related companies, services or trade industry will be connected and they will insert core data related to driving, traffic accidents, repairs and other car-related transactions into the blockchain.

Uber officially ceased its ride-hailing operations in Vietnam on April 8 after the operations in Southeast Asia were merged with Grab. Meanwhile, Go-Jek from Indonesia is preparing to enter the Vietnamese market.

With a population of around 93 million and about 45 million motorbikes owned in the country, Vietnam is seen as an alluring market for bike-hailing services. It is also a lower cost option for expansion when compared to neighbours Singapore and Malaysia.

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