Hanoi bans Uber, Grab ride-sharing service
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Hanoi bans Uber, Grab ride-sharing service

Economy, Vietnam, Vietnam Finance News

Hanoi has banned ride-hailing apps, including Grab and Uber, from offering ride-sharing service following the Ministry of Transport’s recent ruling.

Both Grab and Uber launched GrabShare and UberPool respectively in May this year. The services allow drivers to add additional passengers to their journey in addition to the person who makes the original booking. An example would be work colleagues sharing a ride.


  


By late April this year, the number of app-based taxis in Hanoi reached up to 4,000 cars




But according to the transport ministry, under the ministry’s Circular 63, transport firms are only permitted to sign one contract per trip. If a GrabCar driver carries two passengers that agree to share their ride with each other, it means he is fulfilling two separate contracts, and therefore in breach of regulations, the ministry explained.

Meanwhile, sharing a car with a stranger may result in possible risks for passengers the ministry claimed, though such practices are very common at among traditional taxi companies at airports. The ministry used this reason to support their claim it was necessary to stop car-sharing services.

The ministry has requested departments of transport of cities and provinces nationwide to implement the ban and supervision the implementation to timely deal with the violation.

Hanoi is among the localities selected for the pilot operation model of Uber and Grab. By late April this year, the number of app-based taxis in Hanoi reached up to 4,000 cars. Meanwhile, more than 22,000 participate in HCM City.

Both Hanoi and HCM City admitted their difficulties to control the rapid development of app-based taxis.

QBCA

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