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E-riding firms have raised taxi fares, and traditional taxi firms are expected to follow the move.
Mai Linh and Vinasun, the two big traditional taxi firms, are losing their positions in the market as they have found it difficult to compete with e-hailing taxi firms.
Traditional taxi companies have demanded that app-based taxis with less than nine seats should be treated the same as them to “ensure fairness, transparency and the same responsibilities towards customers.”
The Ministry of Finance makes a careful study of tax laws to collect taxes from electronic contract-based vehicles to avoid evasion and ensure a level playing field for ride-hailing and traditional taxi firms.
Traditional taxi operators in Vietnam are being accused of unfair anti-competitive practices against ride-hailing firm Grab, as they attempt to compete against the latter’s expansion in the country.
The classification of ride-haling platforms and transport service companies into the same category might pose a threat to economic development in the Industry 4.0 era.
As ride-hailing services like Grab have become increasingly popular, traditional taxi firms are urged to apply technology and adapt to ride-hailing trend.
As Uber has lost to Grab in Vietnam and has left the market, Vietnamese are taking advantage of a golden opportunity to jump into the ride-hailing market.
Vietnam is opening its doors to global integration with the recent signing of the CPTPP. Thus, defining Grab and Uber as traditional taxi services can affect Vietnam’s integration efforts as well as the local business environment.
The heated debate over whether Vietnam should regulate Grab and Uber as taxi services continues.
Taxi companies in Ho Chi Minh City have had to cut 3,000 cars from their fleets since the arrival of Uber and Grab, according to the city's Taxi Association.
The transportation market of Vietnam is witnessing significant changes since the rapid expansion of ride hailing apps Uber and Grab in recent years.
Taxi firms are bristling over a draft regulation that will place greater restrictions over their operations in Hanoi.
To compete with Grab and Uber, traditional taxi firms have begun providing e-hailing services. However, if people want a traditional taxi, they should call the operator rather than use an app.
Many taxi firms have quickly built and released mobile apps and software to improve their services and compete with Uber and Grab.
Taxi companies have expressed mixed views on draft regulations drawn up by the Ministry of Transport to amend Decree No 86/2014/ND-CP, which concerns automobile transportation businesses.
The Ministry of Transport has applied information technology to support the management and connection of commercial passenger transportation by contract (GrabCar) during a two-year trial period, which began this month.
VietNamNet Bridge – The Ha Noi Transport Association has suggested that Uber and Grabtaxi services should be suspended to ensure equal competition between them and the normal taxi firms.
VietNamNet Bridge - Vinasun and Mai Linh, the two dominant companies in the taxi market, are being threatened by newcomers such as Uber, Grabtaxi and Easytaxi which allow passengers to call taxis via smartphones.
Transport operators, especially taxi companies, want to lift their rates following the increase in fuel prices last week.