Traditional taxis need to introduce new innovations to regain their popularity among locals. (Photo courtesy of nld.com.vn) However, with the COVID-19 pandemic and the recent increase in the price ofgasoline, many people have re-opted for traditional taxis because it isincreasingly difficult to book ride-share cars, and the fares have risensharply.
It took less than 100,000 VND for a traditional taxi to travel from Tan Binh districtto District 1 during rush hour while that of ride-hailing cars was 200,000 VND,Binh, a resident of Tan Binh district, told Nguoi Lao Dong (Labourer)newspaper.
It is worth mentioning that Binh booked his trip via multiple ride-hailing appsand was still not able to call for any taxis.
Le Minh Hieu, who is living in Binh Thanh district, shared a similar concernand has switched to motorbike taxis or traditional taxis because the price ismore stable and it is easier to book a trip.
"Many people still believe that the fares for ride-hailing cars are lowerthan taxis and motorbike taxis, but the reality is completely different. Inaddition to 10,000 VND per kilometre, there are extra fees for each ride, whichpassengers have to pay for. During peak hours or under rainy weather, the pricejumps up to two to three times but drivers still cancel the booking withoutride-hailing app users understanding why,” Hieu said.
Flexible pricing and no extra fees are traditional taxis’ advantages, Chu Hau,a resident of Thu Duc city, said.
“Traditional taxis are just one call away and some companies have created abooking app to make it easier for passengers to call for cars,” he added.
These days, more and more ride-hailing car drivers have turned off the app andstopped working due to the high price of petrol and the increasing percentageof revenue ride-hailing apps take.
The more they drive, the more they lose.
Tran Van Toan, who is living in District 8, said that he has recently switchedfrom being a GrabCar to traditional taxi driver.
“GrabCar drivers cannot earn much due to the 30% commission while traditionaltaxi drivers only need to pay 6-7% of their revenue to the company,” he said.
Khuat Van Tung in Tan Binh district, who is a former ride-hailing taxi driver,said that he recently applied for Vinasun, a traditional taxi company.
Tung is given a company car and revenue is split 50/50 while all expenses arepaid by the company.
“If you can earn more than 2 million VND, the driver will enjoy 90% of therevenue over 2 million VND,” he added.
Innovation
Le Trung Tinh, chairman of the HCM City Passenger Car Transport Association,said that ride-hailing companies initially tried their best to take care ofcustomers with a series of incentives, cheap fares, discounts, and free extratrips.
After dominating the market, they started to impose all kinds of fees andincrease the price.
Recently, Grab has introduced new surcharges in hot weather, which has causeddissatisfaction among consumers, especially given the context of the pandemicand economic difficulties.
This can be an opportunity for taxi companies to strengthen their fleet ofvehicles and regain their image, thereby regaining the balance of two types ofurban transportation and helping to reduce the growth in number of privatevehicles and traffic congestion.
According to Doan Hong Duc, head of Traffic Planning Department of the HCM CityUniversity of Transport, traditional taxis and ride-hailing vehicles arecurrently both integral parts of the multilateral transport system in citiesaround the world and in Vietnam.
Though traditional taxis have been more embraced, some shortcomings need to beovercome in order to gain the trust of consumers.
It is crucial for traditional taxi companies to use well-trained andexperienced human resources and apply new technology to offer reasonable pricesto attract customers and compete with ride-hailing car companies, experts said./.
VNA
