HO CHI MINH CITY, 7 Feb 2018:
The Ho Chi Minh City people’s court continues hearing a civil suit brought by local domestic taxi operator Vinasun against popular ride hailing service Grab, for alleged unfair business practices, Vietnam News Agency reported.
Vinasun, once a dominant player in the taxi transport in the southern region, has seen its market share gradually eaten away by Grab and Uber as they continue to gain popularity – especially as the number of smartphone users in the country rises.
The taxi operator claimed the ‘illegal operations’ of Grab in Vietnam are to blame for the company’s falling revenue which fell to 40 billion Vietnamese dong (RM6.9 million) in 2016 and 2017.
Truong Dinh Quy, deputy director-general of Vinasun, alleged that Grab exploited the pilot window given by the Ministry of Transport to software-based transport services and had conducted “rampant” promotion deals and discounts – akin to the practice of “dumping” of manufactured goods.
Vinasun also claimed the company needs to observe 13 regulations, while Grab only has to follow three – creating unfair competition in the field of passenger transport.
“Industry 4.0 apps are an inevitable trend. However, being just an app-based ride hailing service, Grab has disrupted the taxi transport sector, causing several implications to state management activities in tax collection and ensuring social security for those work for Grab.
“In addition, Grab drivers are encountering difficulties when the company collects up to 25-28% from the taxi drivers’ earnings as commissions.
“Even more concerning, Grab Vietnam reported charter capital of 40 billion Vietnamese dong while they claimed they turned a loss of 938 billion Vietnamese dong, which earned them special supervision by the finance ministry.”
Quy said the company has prepared for the case over the last year and is ready to fight against Grab and Uber to the end in a “legally transparent” manner.
Grab’s lawyers, on the other hand, contended that Vinasun’s allegations are baseless and that their software solution has actually created fair grounds for competition between conventional taxi operators.
This is the first time the increasing tension between conventional taxi operators and their app-based counterparts took the fight to the courtroom.
Meanwhile, Vietnamese lawmakers seek to construct appropriate legal tools to effectively regulate these emerging services.
– Bernama