Ministry of Transport denies GrabVietnam’s expansion plan

Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai. Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments. According to a report by The Saigon Times, the ministry says the application of technology to make c
June 29, 2018 Read time: 2 mins
Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai.


Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments.

According to a report by %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external The Saigon Times false http://english.thesaigontimes.vn/60779/transport-ministry-rejects-grabtaxi%E2%80%99s-service-expansion.html false false%>, the ministry says the application of technology to make commuting easier for residents is only available for licenced operators whose vehicles have a transport service badge. These companies must adhere to business transport regulations, ensure fair competition and pay duties enforced by the state.

The ministry’s ruling on pilot schemes for ride-hailing businesses reportedly allows GrabTaxi to operate in regions such as Hanoi, Ho Chi Minh City, Khanh Hoa, Danang and Quang Ninh.

In March, minister Nguyen Van The said ride-hailing firms must comply with Vietnamese laws or have their operations halted. The move is intended to improve the responsibility these companies have for drivers and passengers.

The report says the ministry is now developing its automobile business operations to keep app-based firms under control.

UTC

Related Content

  • January 4, 2019
    FastGo brings ride-hailing services to Myanmar
    Vietnamese firm FastGo has launched its ride-hailing, delivery and catering services in Myanmar as part of a strategy to grow its business in 2019. A report by The Saigon Times says the company intends to attract two million users and 100,000 driver-partners this year in Myanmar’s major cities and provinces. In the coming years, FastGo is expected to form partnerships in Myanmar and Vietnam to help make its services and products more popular. In October 2018, FastGo announced its plans to enter Myanmar
    Read More
  • January 28, 2019
    Vietnam gov urges ministries to improve traffic safety
    Vietnam’s deputy prime minister Truong Hoa Binh is calling on government ministries to better enforce traffic safety following deaths caused by drink- and drug-driving. Binh says the Ministry of Transport needs to scrutinise procedures for re-issuing driving licences, and to inspect the training and examination process for drivers at training centres nationwide. He is urging the Ministry of Public Security to direct traffic police units to increase checks and to deal with drivers who are over the blood-
    Read More
  • October 11, 2018
    FastGo to bring ride-hailing service to Indonesia and Myanmar
    Vietnamese ride-hailing company FastGo intends to expand its service to Indonesia and Myanmar by the end of the year. In a report from Việt Nam News, Nguyễn Hữu Tuất, FastGo’s CEO, says the company expects to occupy a 30% market share in Indonesia and take second place after Grab in Myanmar. The company aims to raise US$50 million in a new round of funding to help accelerate regional expansion, Tuất adds. According to Tuất: “We chose Myanmar and Indonesia as we have relevant strategies for them in place.
    Read More
  • February 5, 2019
    Uber suspends Barcelona service after new regulations introduced
    Taxi-hailing giant Uber is suspending its service in the Spanish city of Barcelona. The move comes after new regulations were passed by local authorities, according to Reuters. The company started its UberX service in the city last year. But from now on, passengers using ride-hailing services will have to wait at least 15 minutes after booking a ride before they can be picked up – thus negating one of the key selling points of companies such as Uber. Speed and convenience – as well as cost – are w
    Read More

Highlighted Content