The trial for the case brought by local taxi operator Vinasun against Grab took place on November 22 after several delays to seek additional evidence, Thanh Nien reported.

Representatives of Grab at the court this morning, November 22

As the local newspaper noted, at the trial opening this morning, November 22, Judge Le Cong Toai released the report on the assessment of damages Vinasun has suffered, submitted by Cuu Long Co. as requested by the HCMC People’s Court.

Cuu Long Co. claimed that figures related to Vinasun’s shares on the stock market come from data gathered by three securities companies. In particular, the price of each Vinasun share was VND30,400 on December 31, 2015, but it dropped by 28% to VND21,900 on June 30, 2017.

A report by Viet Capital Securities Co., released on October 3, 2016, showed that Vinasun had recorded revenue growth in the first half of 2016 compared with the same period a year earlier but saw declining profits as a result of increasing commissions to retain drivers and prevent them from working for Grab or Uber.

Viet Capital Securities Co. also recommended customers be cautious of long-term investments in Vinasun shares due to risks stemming from the competition strategies of Grab and Uber.

In addition, according to a report by Rong Viet Securities Corporation, dated November 2016, Vinasun’s profits were staying low due to the presence of Uber and Grab.

In addition, MB Securities Co.’s report on August 28, 2017, indicated that fierce competition on the market had caused the poor business results, and the share price was recommended at VND14,600 per unit.

As pointed out in the Cuu Long Co. report, the taxi transport sector in HCMC posted high growth in January 2016-June 2017, and Vinasun should have seen good growth accordingly. However, Vinasun saw a decline in revenue and profit, whereas Grab’s revenue soared. This is an indication of the negative impact that Grab’s market penetration has had on Vinasun’s business performance.

After releasing the assessment report of Cuu Long Co., the court turned to queries on compensation.

Vinasun once again insisted that Grab had used unfair business practices, leading to Vinasun’s falling revenue and profit. It asked for a total compensation amount of over VND41 billion.

Meanwhile, Grab disputed the points presented in the report and requested the suspension of the case.

The trial will continue on November 23.

SGT