The Ministry of Transport has allowed two app-based taxi services GoGar and FastGo to be piloted in HCM City following municipal authorities’ proposal.
The Ministry of Transport has allowed two app-based taxi services GoGar and FastGo to be piloted in HCM City
With the trial of GoCar operated by GoViet Technology Trading Co. Ltd. And FastGo of FastGo Vietnam Joint Stock Company, there are eight app-based taxi firms permitted to be piloted in HCM City.
According to the HCM City’s Traffic Safety Board, the city is now home to more than 520,000 cars. The city saw an annual rise of 11.5% in car numbers during the 2011-2018 period.
Experts blamed the booming car numbers on the development of app-based taxi services in the city. This has further pressured the city’s transport infrastructure, causing traffic jams.
Meanwhile, Le Trung Tinh, chairman of the HCM City Inter-provincial and Tourism Passenger Transport Association, supported app-based taxi development.
However, he suggested it was necessary to restrict the number of cars in case if infrastructure wasn’t capable of supporting increased traffic.
Nguyen Huu Tuat, general director of FastGo, said the company is operating 30,000 cars in big cities nationwide.
Tuan added that FastGo’s operation in HCM City would not lead to the higher number of cars as in fact many among FastGo drivers had been traditional taxi employees.
Ride-haling firms are increasingly pressuring traditional taxi companies.