Uber, Grab banned from ride-sharing service
>> Taxi associations beg PM for help in competition with Uber and Grab
The Ministry of Transport has requested Grab and Uber taxi stop their newly-launched ride sharing service for contract cars.
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.
But according to the Ministry of Transport, under the ministry’s Circular 63, transport firms are only permitted to sign one passenger transport contract for each ride, so Uber and Grab carpooling service violates this regulation, despite it cutting congestion due to limiting the number of vehicles on the streets.
Sharing a car with a stranger may result in possible risks for passengers the ministry claimed, though such practices are very common at airports. The ministry used this reason to support their claim it was necessary to stop the car-sharing services.
In case, Uber and Grab fail to conform to the regulation, they will face the fine of VND4-6 million (USD175-260) per ride.
Hanoi authorities have recently said that they will manage the operation of app-based taxi service, including Uber and Grab, in a way similar to traditional taxis to guarantee a fair business environment.
The move followed Hanoi, HCM City and Danang taxi associations begging the Ministry of Transport to call for what they described as 'a more equal business environment' for taxi services.
Uber and Grab taxis are also required to have logo, badge or their own paint colour. Signposts banning Uber and Grab vehicles maybe put up on Hanoi streets.
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.
GrabShare service launched in May this year
But according to the Ministry of Transport, under the ministry’s Circular 63, transport firms are only permitted to sign one passenger transport contract for each ride, so Uber and Grab carpooling service violates this regulation, despite it cutting congestion due to limiting the number of vehicles on the streets.
Sharing a car with a stranger may result in possible risks for passengers the ministry claimed, though such practices are very common at airports. The ministry used this reason to support their claim it was necessary to stop the car-sharing services.
In case, Uber and Grab fail to conform to the regulation, they will face the fine of VND4-6 million (USD175-260) per ride.
Hanoi authorities have recently said that they will manage the operation of app-based taxi service, including Uber and Grab, in a way similar to traditional taxis to guarantee a fair business environment.
The move followed Hanoi, HCM City and Danang taxi associations begging the Ministry of Transport to call for what they described as 'a more equal business environment' for taxi services.
Uber and Grab taxis are also required to have logo, badge or their own paint colour. Signposts banning Uber and Grab vehicles maybe put up on Hanoi streets.
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