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Two Vinasun taxis bear
bumper stickers denouncing Grab and Uber in this photo taken on October 8,
2017. Photo: Tuoi Tre
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Grab’s response
In response
to Vinasun’s accusations, a representative of Grab present at the court in Ho Chi Minh City on
Tuesday said it was operating in conformity with Decision 14 issued by the
Vietnamese Ministry of Transport in January 2016.
The decision allowed Grab
to pilot its business model in Hanoi , Ho Chi Minh City , Da
Nang , Khanh Hoa and Quang Ninh for two years between
January 2016 and January 2018.
Therefore,
if Vinasun had suffered from any damages following the issuance of Decision
24, it should have filed a complaint to the transport ministry rather than
seek legal actions against Grab, the representative said.
“Grab is
well-equipped with the experience and expertise needed to operate the
ride-hailing application, and will continue to offer its service in Vietnam as
long as the laws allow it to,” he stressed.
The Grab
representative added that the company had adhered strictly to Vietnamese law
by entering into contracts with its transport partners and collecting
personal income tax on their behalf.
He refused a
request to submit the contracts as evidence before the court, citing them
being “business secrets.”
“If you fail
to submit the contracts, on what grounds are you maintaining that Grab has
been conforming to Vietnamese laws?” a Vinasun lawyer pressed, to which there
was no response from the defendants.
Further
questions from lawyers of the plaintiffs regarding Grab’s business operations
were also left unanswered.
A Grab representative
speaks at a court in
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‘Disruptive’
pricing
According to Vinasun, Grab now has
around 17,000 cars in its fleet, an increase from 13,000 as of June 2017.
The large number of cars coupled
with “disruptive” pricing and promotions has caused profound losses to
Vinasun and other taxi companies in
“Grab has a charter capital of
around VND40 billion [$1.76 million], while cumulative losses from its
business operations have amounted to over VND930 billion [$40.97 million].
Such promotions and pricing strategies are disruptive against other
competitors,” a Vinasun representative complained.
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Tuoi Tre News
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