Transport ministry reconsiders ride-sharing service ban
The Ministry of Transport has sought opinions from ministries,
localities and transportation associations on its recently imposed ban on
app-based taxi ride-sharing service.
The ministry recently sent a document to the ministries of police, justice,
finance, industry and trade, information and communications; authorities of
Hanoi, HCM City, Danang, Quang Ninh and Khanh Hoa and the Vietnam auto
transport association and Hanoi and HCM City taxi associations.
launched in Vietnam in May this year.
In the document, the
Ministry of Transport admitted that earlier the ministry requested Grab to
stop its ride-sharing service called GrabShare. However, now, the ministry
needed to gather the opinion after receiving Grab’s reports on advantages of
the GrabShare. Grab has asked for the ministry’s permission for the firm to
continue the service.
The Ministry of Transport noted that the ministry wants to get the opinion
about Grab’s proposal and also needs recommendations about fines for the
violation in this service.
Both Grab and Uber launched GrabShare and UberPool respectively in May this
year. The services allow drivers to add additional passengers to their
journey in addition to the person who makes the original booking. The service
can help save customers around 30% compared to the original booking.
But traditional taxi companies strongly oppose the service, saying that it is
illegal and unfair competition.
In June this year, the Ministry of Transport requested the ban on the
ride-sharing service, explaining that under the ministry’s Circular 63,
transport firms are only permitted to sign one contract per trip. If a
GrabCar driver carries two passengers that agree to share their ride with
each other, it means they are fulfilling two separate contracts, and
therefore in breach of regulations, the ministry explained.
The ministry spuriously claimed that sharing a car with a stranger may result
in possible risks for passengers, although such practices are very common
among traditional taxi companies at airports