Minister of Transport Trương Quang Nghĩa has announced that State management towards Uber solely aims to ensure that the transportation company’s operations in Vietnam comply with regulations. — Photo nld.com.vn

“The management does not aim to cause difficulties for Uber vehicles,” Nghĩa said on Tuesday.

According to Trần Bảo Ngọc, director of the ministry’s Transportation Department, under the current regulation, Uber can only allow vehicles with transportation business licences or taxis to connect and provide services on its platform.

However, a number of Uber cars have been found without licences. Therefore, the ministry has asked for tighter supervision to prevent violations.

According to Ngọc, Uber confirmed it solely operates as a car hailing service firm, not a transportation firm. The ministry asked Uber not to allow cars without transportation service licences to use the platform.

Ngọc also said that Uber must complete the project on applying technology in managing and connecting transportation service vehicles and submit it to the ministry. He added that the project must clarify responsibilities of Uber and transportation service provider in case there are complaints from passengers. The company must also provide an appropriate form of e-billing.

Ngọc said that there are about 20 applications similar to Uber and Grab, which aim to connect drivers and passengers with more convenience.

The car hailing application is more efficient than using phone calls and radio systems to connect, which was the traditional practice for taxi firms. A report by Grab said that car hailing service application helped reduce the number of empty cars on the road by nearly 89 per cent.