Business
Taxi firms report losses from coronavirus outbreak
  • | laodong, dtinews.vn | February 19, 2020 08:18 AM
Many taxi firms have reported a 50% loss in revenue due to the coronavirus outbreak.


   

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Nguyen Cong Hung, vice head of the Vietnam Automobile Transportation Association and Hanoi Taxi Association, said they had been badly affected by the outbreak as many firms suffered a 50-60% loss in revenues compared to the same period last year.

One major taxi firm, Mai Linh, have suffered a 40% revenue loss. They have had to spend more on preventive measures such as issuing free face masks to passengers and sterilising cars and offices, not to mention other expenses. Since the outbreak started, Mai Linh spent over VND7bn (USD301,000) to offset losses.

Ta Long Hy, chairman of HCM City Taxi Association, said the taxi firms including Vinasun were suffering from huge losses. Since January 29, the number of passengers had dropped by the day. Customer numbers have fallen 15-18% a week. The firms in HCM City have also suffered a 40-60% loss in revenue compared to before the Tet holidays. Some drivers can only run two to three trips a day.

"We also have to protect our drivers. Since the start of the outbreak, Vinasun has asked its drivers to wear masks and provided 6,000 disinfection and hand wash bottles. Every time changing shifts, we have to sterilise the vehicles," Hy said.

The situation will get better if firms can persuade the drivers to stick around and the outbreak slows. However, with the current difficulties and losses, many drivers have started searching for another job. Firms have to find ways to support the drivers.

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