The transportation market of Vietnam is witnessing significant changes since the rapid expansion of ride hailing apps Uber and Grab in recent years.
After the frenzied wave of buying cars to drive for Grab and Uber, many people were shocked to find themselves tens of millions of dongs in tax arrears after selling their cars.
From early 2017, nearly 100 Grab and Uber drivers have been financially penalized for nearly VND350 million (15,400) due to lack of listed identification information, such as name and phone number of the companies.
Potential benefits and challenges for the digital economy and new-age regulations for new-age businesses were discussed at a workshop in HCM City on August 30.
Authorities in Hanoi have come up with a plan that would involve all the 19,000 taxis currently operating in the city to be repainted in one of two colors.
The Hanoi transport department has published a list of streets and thoroughfares which taxis will be prohibited from entering during rush hours starting this month.
Many cars have been found to provide Uber and Grab services in Danang City despite not being allowed by municipal authorities.
Along with the development of digital technology, online lending is getting more popular by inducing numerous benefits for both borrowers and lenders. However, it also contains some possible risks that all should be wary of.
Online transport services that connect inter-provincial transport companies have reduced costs and helped reduce pollution by having fewer trucks on the road.
In the face of the strong development of technical companies in the transportation business, Mai Linh Group is confident in taking the competition to Grab and Uber.
Vietnamese taxi company Vinasun has seen a decrease in revenue and employees in the first half of this year, claiming it due to the unfair competition in terms of price posed by Grab and Uber.
The Finance Ministry asserts the collection of tax on Grab and Uber is fully compliant with prevailing tax regulations and many traditional taxi companies are still paying less than the fixed tax payable by the two foreign firms.
To compete with Grab and Uber, traditional taxi firms have begun providing e-hailing services. However, if people want a traditional taxi, they should call the operator rather than use an app.
The Ministry of Transport has asked ride hailing platforms Uber and Grab to stop providing carpooling services.
Ridesharing apps are continuing their uphill battle against Vietnam’s regulations in Hanoi as authorities mull a proposal to ban Uber and Grab cars from entering certain streets.
Vietnam’s Ministry of Transport has demanded that Uber and Grab remove special features allowing passengers to share rides and split the costs with others.
The authorities say sharing a car with a stranger comes with risks that passengers should not ignore.
Many taxi firms have quickly built and released mobile apps and software to improve their services and compete with Uber and Grab.
The Ministry of Transport has clarified on its website that it has not issued any instructions to stop the pilot implementation of passenger e-hailing projects such as Grab and Uber.
The pilot program allowing Grab and Uber as well as several local taxi and transportation companies to operate their app-based services in three Vietnamese localities has expanded so rapidly that the transport ministry has been forced to put the brakes on it.