GrabTaxi requested to stop operations in three provinces

This was the order of Le Dinh Tho, Deputy Minister of Transport, after finding that GrabTaxi implemented the ride-hailing services in the provinces without a government permit for such contracts, based on Decision No.24/QD-BGTVT on the pilot scheme for ride-hailing services issued by the Ministry of Transport (MoT). Besides, according to MoT, GrabTaxi is only permitted to directly work with taxi drivers to supply this service after receiving the approval of the transport business firms and the departments of Transport at the cities and provinces. Earlier in December 2017, MoT reported to the prime minister about the implementation of the two-year pilot programme of ride-hailing services via technology applications. Accordingly, the authorities identified numerous violations in GrabTaxi and Uber’s operations. Notably, in a number of areas, GrabTaxi and Uber are implementing ride hailing services without reporting on their operations to local authorities or maintaining a representative office or legal representation. Thus, in order to tightly supervise the operation of transport firms supplying technology applications of electronic matching, such as Uber and GrabTaxi, in early January 2018, MoT submitted the draft of a new circular that includes regulations for passenger transport (by car) through software. Accordingly, technology application providers must meet ten conditions. Notably, technology application providers will have to have business licences or enterprise registration certificates to do electronic business and have a certificate from the Ministry of Industry and Trade (MoIT) confirming that applicants have completed registration. Besides, before launching operations, technology application providers must register information related to their main offices and… [Read full story]


Link and