Vietnam`s Ministry of Transport (MoT) has rejected Grab`s proposal to expand its service network beyond the current five cities and provinces in the country.
The ride-hailing firm has asked for permission to bring its service to a number of provinces and cities, including Ninh Thuan, Dong Thap and Gia Lai.
At present, Grab is not allowed to directly work with taxi drivers to supply its service without consent of transport business firms or permission from local transport authority.
Grab's services are currently available in five cities and provinces, including Hanoi, Ho Chi Minh City, Khanh Hoa, Da Nang and Quang Ninh, following the government's direction and Decision No. 24 of the ministry to pilot the application of technology in managing and connecting electronic contract-based passenger transportation. The ministry, thus, does not plan to consider the proposal at the moment.
The ministry still maintains its support for the application of technology in business activities, nevertheless, the app is eligible to licensed transport operators.
In early 2018, the MoT requested Grab to stop operation in three provinces namely Thua Thien - Hue, Ba Ria - Vung Tau, and Lam Dong, saying that the ride-hailing service it not permitted in those localities.
The ministry last month considered Grab's acquisition of Uber in Vietnam a violation of the Law on Competition,arguing its combined market share after the deal is over 50%.
Following the result, the Vietnam Competition Authority under the MoIT is considering launching an investigation into the acquisition, while urging Grab to provide more evidences and calculate the exact combined market share.
Grab and Uber arrived in Vietnam in 2014 and operate both car and motorbike hailing services. The two services have been running on a trial basis since early 2016, but have been caught up in a turf war with traditional taxi drivers.
Grab on March 26 confirmed its acquisition of Uber's South-east Asia operations for an undisclosed sum, raising concern over its alleged monopoly status in the region's ride-hailing market.
Illustration photo.
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Grab's services are currently available in five cities and provinces, including Hanoi, Ho Chi Minh City, Khanh Hoa, Da Nang and Quang Ninh, following the government's direction and Decision No. 24 of the ministry to pilot the application of technology in managing and connecting electronic contract-based passenger transportation. The ministry, thus, does not plan to consider the proposal at the moment.
The ministry still maintains its support for the application of technology in business activities, nevertheless, the app is eligible to licensed transport operators.
In early 2018, the MoT requested Grab to stop operation in three provinces namely Thua Thien - Hue, Ba Ria - Vung Tau, and Lam Dong, saying that the ride-hailing service it not permitted in those localities.
The ministry last month considered Grab's acquisition of Uber in Vietnam a violation of the Law on Competition,arguing its combined market share after the deal is over 50%.
Following the result, the Vietnam Competition Authority under the MoIT is considering launching an investigation into the acquisition, while urging Grab to provide more evidences and calculate the exact combined market share.
Grab and Uber arrived in Vietnam in 2014 and operate both car and motorbike hailing services. The two services have been running on a trial basis since early 2016, but have been caught up in a turf war with traditional taxi drivers.
Grab on March 26 confirmed its acquisition of Uber's South-east Asia operations for an undisclosed sum, raising concern over its alleged monopoly status in the region's ride-hailing market.
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