A young, tech-savvy population short on cars but big on smartphones is driving double-digit growth for ride-hailing apps Uber and GrabTaxi in Viet Nam, and inspiring some executives to dream of replacing private car ownership altogether.

Uber launched its service in Viet Nam last year and says Ho Chi Minh City and Ha Noi already have the highest average numbers of trips per user out of the 300 cities in which it operates, double the rate in New York.

A GrabTaxi logo is seen on a taxi in Ha noi, September 9, 2015. Reuters

Ride-sharing apps have taken off among Viet Nam's rapidly expanding middle class as they provide four-wheeled comfort in a country better known for chaotic swarms of scooters and Southeast Asia's most expensive taxi fares.

"Our goal is to replace private car ownership," San Francisco-based Uber Technologies' general manager for Viet Nam, Dang Viet Dzung, told Reuters in an interview.

"If Uber is available everywhere, so cheap, so reliable, why do you need to buy a car?"

Uber charges 8,000 dong (27-36 cents) per kilometre compared with 11,000-15,000 dong for taxis in Ho Chi Minh City. The city's taxi rates are more than double those in Bangkok, Manila and Jakarta.

(Source: tuoitrenews)