Trial of Vinasun-Grab civil case suspended for one month
The jury on February 7 decided to suspend the trial of a civil case between domestic taxi operator Vinasun and Grab, a popular ride hailing service, for one month after hearing statements by representatives of both sides.
The suit was initiated by Vinasun against Grab on accusations of unfair business practices.
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| Representatives of taxi operators were present at the court. |
Vinasun, once a dominant player in taxi transport in the southern region, has seen its market share gradually eaten away by Uber and Grab as they continue to gain popularity, especially as the number of smartphone users in the country rises.
Vinasun claims the ‘illegal operations’ of Grab in Vietnam are to blame for the company’s falling revenues in 2016 and 2017, some VND40 billion (US$1.756 million).
This is the first time the increasing tension between conventional taxi operators and their app-based counterparts took to the fight to the courtroom, all while Vietnamese lawmakers seek to construct appropriate legal tools to effectively regulate these emerging services.
A new draft decree is in the works, which would require Grab and Uber offices in Vietnam to register for licences as an enterprise doing ‘electronic business’ and transport cars must have easily identifiable logos on both front and back windows.
