Vietnam's AI race among food delivery and ride-hailing apps

In the past, it was not uncommon to see ride-hailing drivers and passengers struggling to find each other amid crowded streets. However, today, it has become the norm to see a Grab driver arriving at the exact pickup location just three minutes after a ride request or a Be customer locating their favorite café with just a vague keyword. This reality is made possible by artificial intelligence (AI), which is quietly revolutionizing Vietnam’s ride-hailing and delivery industries.

According to Google, Temasek, and Bain & Company, Vietnam's digital economy is expected to reach $45 billion by 2025, with ride-hailing and e-commerce leading the way. This makes it a fertile ground for platforms like Grab, Be, and Xanh SM to leverage AI for optimizing user experiences. Particularly in the post-pandemic era, the demand for digitalized and personalized services has surged, pushing the AI race into its final stretch.

Starting as a ride-hailing app, Grab has evolved into a “super app” offering 12 services, from food delivery to digital payments. To manage this complex ecosystem, Grab has made significant investments in AI.

Recently, in a statement released alongside its latest financial results, CEO Anthony Tan highlighted that generative AI could enhance the health of Grab’s marketplace. The platform announced the deployment of generative AI to process natural language, predict mobility demand, and automate marketing. The GrabRideGuide tool utilizes AI to analyze real-time data, helping drivers reduce empty trips by 20%.

With a total investment of $250 million in AI since 2019 and strategic partnerships with Microsoft and OpenAI, Grab’s ambition to "AI-ify" its entire service ecosystem is evident. Philipp Kandal, Grab’s Chief Product Officer, stated, “AI not only boosts efficiency but also frees humans from repetitive tasks, allowing them to focus on creativity.”

While Grab leverages its financial muscle, Be, a homegrown Vietnamese platform, has chosen a knowledge-based approach. As a “super app” integrating 12 services, Be has partnered with Aitomatic—an AI company founded by Dr. Christopher Nguyen, a former Google engineer—to access generative AI technology.

At the AISC 2025 Conference, a Be representative revealed that the company has integrated AI into four core areas: system optimization, search, service evaluation, and mapping.

The smart ride allocation system reduces waiting times by 30% by analyzing multidimensional data (weather, events, traffic). One-touch search enhances the urban user experience. Service quality is assessed based on driver and customer behavior. Additionally, real-time map updates help navigate complex urban routes.

These solutions strengthen Be's position in Vietnam's fiercely competitive ride-hailing market by increasing operational efficiency and fostering a seamless and easy user experience.

Furthermore, with a recent investment of VND 739.5 billion ($30 million) from VPBank Securities, Be has expanded its service ecosystem beyond ride-hailing into delivery and digital financial services. This combination allows Be to continuously innovate and create added value for users, attracting a more loyal customer base.

While Grab and Be focus on optimization, Xanh SM—a purely electric taxi brand in Vietnam—has chosen to integrate AI for sustainable development. In 2023, the company introduced an AI-powered route analysis system that reduces energy consumption by 15% while predicting demand in “green” zones (areas with charging stations). Although its AI investment is not as extensive as its competitors, Xanh SM demonstrates that AI can coexist with environmental sustainability goals.

Dr. Nguyễn Quang Đồng, Director of the Digital Policy Research Institute, commented, “AI enhances platform competitiveness, but a balance between automation and human factors is crucial. Ethical AI concerns, such as algorithm transparency and data protection, must be prioritized.”

A 2023 report by Nielsen Vietnam also indicated that 68% of users are willing to share personal data for better experiences, but 52% are concerned about potential misuse. This underscores the need for clear legal frameworks, especially as Vietnam is in the process of drafting its Personal Data Protection Law.

Overall, the AI race among these apps is driving an unprecedented wave of innovation. Users benefit from faster and smarter services, but a fundamental question remains: Are these technologies truly serving the public interest, or are they merely tools for these platforms to consolidate their market dominance?

Customers must consider if the convenience of Be's route analysis and Grab's ability to predict their shopping preferences is worth the sacrifice of their personal information. It's time for customers to stop being passive recipients and start actively influencing the direction of technology.

The platforms that put people at the heart of the AI competition—where technology serves rather than dominates—will ultimately triumph, but there are no losers in this race.