Hundreds of Grab drivers turned off the Grab ride-hailing app and gathered at the firm’s headquarters in Hanoi City today, December 7, to express their opposition to the hike in ride charges starting from December 5.

A Grab driver told Tuoi Tre Online that the hike had angered him and other drivers, while many others said the hike was expected to reduce their income as the number of customers booking rides on the app would drop.

As the value added tax (VAT) has increased to 10% for each ride in line with Decree 126 of the Tax Management Law, Grab has hiked ride charges by 5%-6% for ride-hailing services nationwide to make up for the tax hike and guarantee the income of Grab drivers. Before December 5, drivers paid a VAT rate of only 3%.

Accordingly, the fare of the four-seat Grabcar service in Hanoi, Bac Ninh, HCMC, Binh Duong, Dong Nai and Can Tho was adjusted up by VND2,000 at VND27,000 for the first two kilometers, while the firm raised the fare by VND3,000 at VND25,000 in Haiphong, Quang Ninh and Danang City, among others.

The fare for the four-seat GrabCar service was also hiked by VND500-VND1,000 per kilometer from the third kilometer onwards. SGT