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Gojek Vietnam raises fares after tax regime change

By Sarah ChenVietnam
1 min read
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Ride-hailing company Gojek has raised fares by 8.3-10 percent following the recent revamp of the value-added tax regime, which requires it to pay more.

The hike applies to all three services it offers in Vietnam, motorbike taxi, food delivery and goods delivery, and takes effect on Saturday, the Indonesian company said in a statement.

In Hanoi, a two-kilometer GoRide trip now costs 8.3 percent more at VND13,000, while in HCMC, it costs 10 percent more at VND11,000.

From December 5 the government mandated that ride-hailing companies should pay the VAT of 10 percent on the full fare passengers pay instead of just their share of it.

Gojek also increased the commission it gets from drivers from 20 percent to 27.2 percent like its competitor Grab did recently.

But it assured that the increase would not affect drivers’ incomes.

A trip that cost a passenger VND51,000 before would now cost VND56,000, but the driver’s income would remain unchanged at VND40,000, it said.

Grab last week raised its fares by 5-6 percent and increased its commission by over 7 percentage points, causing hundreds of drivers in Hanoi and Ho Chi Minh City to strike.

Questions & Answers

Q.

What percentage have Gojek's fares increased by?

A.

Gojek has raised its fares by 8.3-10 percent. This increase applies across all three of its services in Vietnam: motorbike taxi, food delivery, and goods delivery. The fare hike took effect on Saturday.

Q.

Why has Gojek increased its fares and driver commission?

A.

Gojek increased its fares and driver commission due to a recent revamp of the value-added tax regime. The government now mandates ride-hailing companies to pay 10 percent VAT on the full fare, rather than just their share of it, effective from December 5.

Q.

How will the fare increase impact Gojek drivers' incomes?

A.

Gojek has stated that the fare increase will not affect drivers’ incomes. For example, a trip costing a passenger VND56,000 (up from VND51,000) will still result in the driver earning VND40,000, according to the company.

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