Prosecutors back Grab appeal
HCM City Superior People's Procuracy have rejected a compensation claim by taxi provider Vinasun against app-based journey booker Grab.
According to the prosecutors, Grab had acquired all permits from the Ministry of Transport and HCM City Department of Planning and Investment so their operation in Vietnam is legal. Moreover, Vinasun's demand for compensation had no legal ground. There could be many reasons for losses including poor management, government policies and changes in the market which were mentioned.
Therefore, the verdict to make Grab compensate Vinasun was groundless.
The prosecutors said Vinasun suffered losses partly because customers prefer Grab’s services. Grab has shown that it is more superior to traditional taxi firms.
Le Dang Doanh, former head of the Central Institute for Economic Management, approved of the appeal and hoped that they would have a fair outcome. Many experts said instead of trying to defeat Grab, Vinasun should find a way to co-operate with other traditional taxi firms to improve service or co-operate with Grab as fighting Grab was ignoring the technological changes it was bringing to the market.
Economist Luong Hoai Nam said Grab was the first that implement electronic bills and active in working with state agencies to send customer trip data to tax authorities. In 2018, Grab contributed over VND440bn in tax, an increase of 232% compared to the previous year.
Prosecutors back Grab appeal
According to the prosecutors, Grab had acquired all permits from the Ministry of Transport and HCM City Department of Planning and Investment so their operation in Vietnam is legal. Moreover, Vinasun's demand for compensation had no legal ground. There could be many reasons for losses including poor management, government policies and changes in the market which were mentioned.
Therefore, the verdict to make Grab compensate Vinasun was groundless.
The prosecutors said Vinasun suffered losses partly because customers prefer Grab’s services. Grab has shown that it is more superior to traditional taxi firms.
Le Dang Doanh, former head of the Central Institute for Economic Management, approved of the appeal and hoped that they would have a fair outcome. Many experts said instead of trying to defeat Grab, Vinasun should find a way to co-operate with other traditional taxi firms to improve service or co-operate with Grab as fighting Grab was ignoring the technological changes it was bringing to the market.
Economist Luong Hoai Nam said Grab was the first that implement electronic bills and active in working with state agencies to send customer trip data to tax authorities. In 2018, Grab contributed over VND440bn in tax, an increase of 232% compared to the previous year.
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