Hailstorm ahead for ride-hailing services in VN

Stop signs for taxi and contract rides on a street in Ha Noi. — VNS Photo Doan Tung The bumpy road thus far for ride-hailing companies Uber and Grab in Viet Nam could well end in a jagged cliff as authorities turn the scanner on their operations, tax practices and competition with domestic taxi operators. In the latest bust-up, on February 6 the HCM City People’s Court City began to hear a lawsuit filed by Anh Duong Viet Nam Jsc, better known as Vinasun Taxi, against GrabTaxi Vietnam Limited Liability Company (Grab). Vinasun’s argument is that it lost more than VND40 billion (US$1.78 million) in 2016 and the first half of 2017 because of Grab’s Illegal business operations in violation of the Law on Competition. Ta Long Hy, chairman of the HCM City Taxi Drivers Association, told the court that both Uber and Grab had suppressed local firms. Grab’s fleet of 28,000 vehicles as of 2017 was the reason why his and other taxi companies had to pull out more than 3,000 cars in HCM City alone from a total of 12,000. Since January 11 the Ha Noi Department of Transport has restricted Uber and Grab’s operations to certain streets – to match similar restrictions on traditional taxis — to ensure a level playing field. Thus, the two companies’ vehicles are not allowed on 13 main streets during certain hours, exactly the same as for regular taxis. Grab also slapped an extra 3.6 per cent fee on its drivers on… [Read full story]


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