Transport ministry to halt carpooling services

The Ministry of Transport has asked ride hailing platforms Uber and Grab to stop providing carpooling services.
Transport ministry to halt carpooling services ảnh 1The transport ministry asks carpooling service to stop as it might cause inconveniences to passengers. (Photo: tuoitre.vn)
Hanoi (VNA) – TheMinistry of Transport has asked ride hailing platforms Uber and Grab to stopproviding carpooling services.

The request also applies for all taxi companies participating in the pilotproject of applying science and technology to support management and connectpassenger services of contracted cars.

A representative from the Ministry of Transport said that carpooling servicesmight cause inconveniences to passengers, adding that for each car route,passengers book a whole car, not only some seat.

The ministry said that the request was raised to ensure the rights ofpassengers and prevent any problems that might arise when using carpoolingservices.

The ministry cited Circular 63/2014/TT-BGTVT, which claims that transportservice providers can only sign one contract with one passenger for one route.

Violations would be fined from 4 million VND (175 USD) to 6 million VND.

Grab started providing carpooling service GrabShare in HCM City in May and in Hanoiearlier this month, which enabled two passengers’ bookings to be completed in asingle trip. Grab said that this solution provided passengers with cheaperfares while helping drivers earn more and alleviating congestion in majorcities. Uber also planned to provide UberPOOL in the country, a service thatthe HCM City Transport Department said is similar to GrabShare.

According to Le Tung, a passenger, using carpooling services helps reducethe number of cars on road, a solution to reduce the traffic congestion. Bothpassengers and drivers can reap benefits. "If a passenger feels that carpoolingservices are inconvenient, they have the right not to choose it," he said.

A representative from Grab Vietnam was quoted by Vneconomy onlinenewspaper as saying that GrabShare was a new feature of GrabCar and within thescope of the company’s e-hailing pilot project.

“We are working closely with the Ministry of Transport to complete operationregulations for contracted cars in line with the established laws,” said NguyenThu An, communication director of Grab Vietnam.

“The development of technology is quickly changing the transportation industry,and it sometimes causes confusions in applying regulations,” she said. An saidshe believed that any features that bring benefits to citizens, companies andthe society at large would receive support from the Government.

Grab and Uber’s operation in Vietnam has faced objections from traditional taxifirms who complained of unfair competition.-VNA
VNA

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