The introduction of Uber and Grab, the major raide- hailing services has sparked an enduring discussion in Vietnam.
The Vietnamese government is allowing the piloting of digital transport contract for under 9 seat vehicles. And as the Vietnamese prime minister Nguyen Xuan Phuc pointed out, “each experiment produces positive and negative effects.”
Uber and Grab has quickly become riders favorite choice because of their convenience, more competitive price and usually better looking vehicles. Since the introduction of Uber and Grab, taxi market in Vietnam’s big cities have undergone transformations. Vietnamese conventional taxis are developing their own apps to compete including V.Car, Thanh Cong Car, M.Car. The policy of piloting digital transport contract for under 9 seat vehicles have driven Vietnamese conventional taxis to change. As prime minister Nguyen Xuan Phuc said, Vietnamese taxis are showing their adaptability. Vietnamese transport firms are operating towards efficiency through the application of IT and proving that they are able to compete in a transparent and equal market.
Experts said conventional taxi firms could no longer turn their backs on technologies. Vietnamese conventional taxi apps are developed under the pressure of Uber and Grab. They have to change themselves to compete fairly with foreign ride-hailing services instead of relying on state protectionism. They are facing the choice of cutting fares, improve services and apply technologies to compete or being left behind.
The introduction of ride hailing apps, on the other hand, has created new headache for the state management. At the recent visit to Uber headquarter in the US, the chairman of Hanoi People’s Committee asked the ride hailing company to share its vehicle database with the authority so as for them to know the number of cars and drivers in the network, as well as to manage the personal income tax of drivers conforming Vietnamese legislations. The Hanoi chairman also asked Uber to share and update information and Uber business plan to ensure that Uber operation would not jeopardize Hanoi transport master plan and the city’s transport system.
Uber and Grab has quickly become riders favorite choice because of their convenience, more competitive price and usually better looking vehicles. Since the introduction of Uber and Grab, taxi market in Vietnam’s big cities have undergone transformations. Vietnamese conventional taxis are developing their own apps to compete including V.Car, Thanh Cong Car, M.Car. The policy of piloting digital transport contract for under 9 seat vehicles have driven Vietnamese conventional taxis to change. As prime minister Nguyen Xuan Phuc said, Vietnamese taxis are showing their adaptability. Vietnamese transport firms are operating towards efficiency through the application of IT and proving that they are able to compete in a transparent and equal market.
The quick development of Grand and Uber has greatly impacted traditional taxis.
|
The introduction of ride hailing apps, on the other hand, has created new headache for the state management. At the recent visit to Uber headquarter in the US, the chairman of Hanoi People’s Committee asked the ride hailing company to share its vehicle database with the authority so as for them to know the number of cars and drivers in the network, as well as to manage the personal income tax of drivers conforming Vietnamese legislations. The Hanoi chairman also asked Uber to share and update information and Uber business plan to ensure that Uber operation would not jeopardize Hanoi transport master plan and the city’s transport system.
Other News
- Hanoi to hold dialogues with investors, businesses in late March
- Female owners of creative startups in Hanoi see more opportunities
- Hanoi's vehicle inspection centers face shutdown
- Hanoi-Vientiane cooperation: Highlight of special bilateral ties
- Hanoi to spend US$203 million on roads to ease congestion
- Vientiane's Hanoi-funded administrative complex inaugurated
- Hanoi attaches high priority to relations with Laos
- Hanoi actively contributes to Vietnam-Laos special relations: Hanoi Party Chief
- Smart City environmental impact assessment approved
- Hanoi-Vientiane relations set example in international relations
Trending
-
Vietnam Innovation Challenge 2024: Sparking innovation for semiconductor and AI industries
-
Vietnam news in brief - March 18
-
Vietnam’s Foreign Ministry negotiates visa waiver agreements with 15 countries
-
The nostagic beauty of Hanoi streets in sketches
-
Casinos contribute US$370 million to state budget over 5 years
-
Hanoi Times Weekly Podcast - Mar. 16
-
"Get on Hanoi 2024" kicked off
-
Smart City environmental impact assessment approved
-
Get On Hanoi 2024: Exhibitions and artistic performances wow visitors