E-hailing cab projects not stopped, says ministry

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.
E-hailing cab projects not stopped, says ministry ảnh 1A user calls a taxi via Grab application. (Photo dantri.com.vn)
Hanoi (VNA) - TheMinistry of Transport has clarified on its website that it has notissued any instructions to stop the pilot implementation of passenger e-hailingprojects such as Grab and Uber.

The ministry issued the note after several online newspapers published reportsrecently that the pilot e-hailing project has been halted.

As of May, subsequent to Decision No 24/QĐ-BGTVT, it has approved e-hailingprojects of nine companies, including Grab Car, V.CAR, Thanh Cong Car, S.Car,VIC.CAR, HOME CAR, Uber Vietnam, Mai Linh Car and LB.Car, the ministry said.

Initial results indicate that the use of technology in transportation has beenhighly appreciated by passengers and that it would gradually meet commuterneeds better, the ministry revealed.

On October 19, 2015, the Prime Minister had given the transport ministry thego-ahead for the implementation of pilot projects that use technology forpassenger transportation in contract cars.

Statistics with the ministry’s transportation department show that as of April,a total of 13,500 under-nine-seat cars are part of the projects in Hanoi, HCMCity and Khanh Hoa.

In Hanoi, 7,000 cars and 19,200 traditional taxis have joined these e-hailingprojects. The figures in HCM City are 22,000 and 11,000, respectively.

As more and more cars join e-hailing services, especially Uber and Grab,traditional taxi companies, associations and local transport managementagencies are demanding that the Government stop these projects as they areexpanding out of control, and putting a pressure on the transportinfrastructure, besides being unfair to traditional taxi businesses.

Previously, the ministry has admitted that the number of cars joining thee-hailing projects was increasing rapidly and that it would tighten theirmanagement. In the draft amendments to Decree 86 on transportation management,the ministry has put Uber and Grab into items for management.

On May 15, traditional taxi firm Vinasun proposed that the operations of Uberand Grab in Vietnam be reviewed and measures taken to tighten management so asto ensure fair competition.

In response, the ministry said that it supports transportation firms thatcomply with regulations and use applications to improve quality of service andbusiness efficiency.

Recently, the HCM City Taxi Association demanded that Grab Taxi’s GrabSharefeature, which was launched in HCM City on May 9 and in Hanoi on June 8, bestopped.-VNA
VNA

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