In a proposal submitted to the city’s Department of Information and Communications, the Traffic Safety Committee said the unauthorized operations of Uber and Grab could worsen traffic in the city.
The panel subsequently asked the department to have internet providers block access to the Uber and Grab applications. It also asked the police to investigate and punish any individual or organization found to be offering transport services illegally in the city.
|Cars and motorcycles on a street in Danang City.
Nguyen Quang Thanh, director of the Department of Information and Communications, confirmed on March 4 that the proposal is under consideration. The department, however, needs more time to study the proposal before advising the city’s government on the final decision.
The latest move comes after Danang, on November 25, declined to run a pilot car hailing project by Grab. In a statement sent to the Ministry of Transport, Danang said Grab's presence in the city would cause a sharp rise in the number of private cars and taxis, worsening congestion.
The ministry had earlier that month asked Danang, Hanoi, Ho Chi Minh City, the northern province of Quang Ninh and the central province of Khanh Hoa to allow Grab to launch trial runs.
Nguyen Tuan Anh, general manager of Grab Vietnam, told VnExpress the company hopes to meet with Danang officials to find the solution to address the city’s concerns.
Meanwhile, a representative from Uber said the company has not received any notice from Danang authorities, and that Uber is focusing on Hanoi and Ho Chi Minh City and does not have plans to expand to Danang yet.
Grab, a Malaysia-based company, is the only foreign-run transport service allowed to operate in five cities across Vietnam using registered private vehicles between 2016 and 2018.
Uber, however, has been singled out for providing ride-hailing services without legal permission.