Business

Transport Ministry rejects GrabTaxi Vietnam expansion request

The Ministry of Transport has ordered GrabTaxi Vietnam Co Ltd to halt a planned expansion; the company will only be permitted to grow within the five localities in their pilot programme.
Transport Ministry rejects GrabTaxi Vietnam expansion request ảnh 1The Ministry of Transport has ordered GrabTaxi Vietnam Co Ltd to halt a planned expansion (Photo: VNA)

Hanoi (VNA) - The Ministry of Transporthas ordered GrabTaxi Vietnam Co Ltd to halt a planned expansion; the companywill only be permitted to grow within the five localities in their pilotprogramme.

The five localities are Hanoi, Ho Chi Minh City,Khanh Hoa, Da Nang and Quang Ninh.

The move came after the company submitted arequest to broaden their business in localities including Ninh Thuan, Dong Thapand Gia Lai.

The ministry said it welcomes the application ofscience and technology to support business development because it improvesservice quality and convenience for customers.

However, the ministry ruled that suchapplication should only operate in designated localities by transport firmswith business licenses and with vehicles registered to the ministry.

The rules aim to ensure fair competition andfulfilment of tax obligations to the State, the ministry said.

The ministry also requests the five localities’Transport Departments, as well as authorised agencies, work with transportunits and transport associations to make sure that all local transportcompanies compete fairly and fully fulfil their tax obligations.

Earlier this year, the ministry asked GrabTaxiVietnam Co Ltd not to deploy the technology to transport passengers by car inThua Thien Hue, Ba Ria - Vung Tau and Lam Dong.

At that time, the company’s communicationmanager Nguyen Thu An said GrabTaxi was one of the services in its app, which wasregistered with the Ministry of Industry and Trade as an e-commerce platform.The company argued that e-commerce is allowed nationwide and that they were incompliance with government decrees regulating it.

GrabTaxi was an alternative to connect passengersand taxi drivers, An said, adding that this service does not interfere with theoperation, management and fares of taxi companies.

Grab is one of the most frequently usedonline-to-offline commerce mobile platforms Southeast Asia, operating in 195 citiesin the region. It is estimated that more than 5 million people use the combinedplatform daily. -VNA
VNA
#Ministry of Transport#GrabTaxi Vietnam#e-commerce#taxi drivers#online-to-offline commerce mobile platform#ride hailing app#updated Vietnam news#Vietnamplus#Vietnam News Agency
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