The Hanoi Taxi Association has written to the prime minister expressing disapproval of a recent Transport Ministry proposal to define transport services that use automobiles with fewer than nine seats as either a taxi or contract transport. The association said this proposal would not help resolve the protracted conflict between traditional taxis and ride-hailing firms.

A rider opens the door of a Grab car. The Hanoi Taxi Association has voiced its disapproval of a recent proposal to define transport services using automobiles with fewer than nine seats as either taxi or contract transport – PHOTO: VGP

The association’s chairman, Nguyen Cong Hung, said in the proposal that if the ministry regards these vehicles, including the Grab service, as taxis, this would successfully tackle the lack of fairness in passenger transport, which has been debated for the past few years.

However, the plan is not aligned with the 2015 Electronic Transaction Law or the 2008 Road Transport Law. Further, only eight of the 26 polled Cabinet members favor the plan.

Meanwhile, if the ministry refers to these cars such as contract transport vehicles, which is favored by 15 Cabinet members, the plan would still not resolve the issue of inequality for traditional taxis.

The association claims that the nature of electronic contract-based vehicles with fewer than nine seats is exactly the same as that of taxis.

As the association does not agree with the two plans, it has suggested defining the two types of transport services offered by taxis and contract-based cars more clearly. This would allow firms to rely on these definitions in listing their business models, making them subject to a given set of business conditions.

According to the association, the taxi transport service should be defined as the use of cars with fewer than nine seats to carry passengers, mainly in urban areas, for multiple short trips each day. The trip schedule and itinerary is at the request of the passengers. The service employs a particular app on which customers can book trips and an electronic meter for calculating fares.

The association proposes the contract-based transport service be defined as hiring a vehicle for either an entire trip of at least four hours or a distance of more than 40 kilometers, as outlined in a contract.

Vehicles used for this service neither operate regularly nor follow fixed routes. The contract is printed on paper or established through electronic platforms between the transport business unit and the service user.

The association stated that these definitions would give these transport services an advantage since they can employ mobile apps to manage and connect with passengers and do not run counter to the 2015 Electronic Transaction Law.

In addition, firms can select the transport business model best suited to their operations. This is not contrary to the Road Transport Law. As a result, the State authorities will be able to manage these services more easily, and inequality issues between traditional taxi operators and ride-hailing services such as Grab will be fully addressed.

The association stressed that identifying and naming the types of transport business services accurately is key to controlling the different types of vehicles, as well as avoiding the exploitation of legal loopholes and reducing the problem of insufficient collections for the State budget.

SGT