Hanoi plans to put taxi-style roof signs on Uber, Grab cars
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Officials in the city are tightening rules on transport services. Popular ride-hailing services Uber and Grab may soon be asked to put signs on their cars as officials in Hanoi are tightening rules on transport companies.
Officials said some private cars offering transport services are operating without signs or badges.
Grab, a Malaysia-based company, is the only foreign-run transport service allowed to operate in five cities across Vietnam using registered private vehicles between 2016 and 2018.
Uber, however, has been singled out for providing ride-hailing services without permission.
The company has recently had its application to operate on a trial basis rejected for a second time in Vietnam, according to local transport authorities.
It applied for a license after local regulators outlawed Uber’s smartphone app-based services in November 2015, due mainly to its failure to establish an independent legal entity in Vietnam.
Questions & Answers
Q.Why are officials in Hanoi tightening rules on transport services?
Why are officials in Hanoi tightening rules on transport services?
Officials are tightening rules because some private cars offering transport services are operating without signs or badges, leading to a need for clearer identification.
Q.What is the primary reason Uber's application to operate on a trial basis was rejected in Vietnam?
What is the primary reason Uber's application to operate on a trial basis was rejected in Vietnam?
Uber's application was rejected largely due to its failure to establish an independent legal entity in Vietnam, following regulators outlawing its services in November 2015.
Q.Is Grab allowed to operate legally in Vietnam?
Is Grab allowed to operate legally in Vietnam?
Yes, Grab is allowed to operate in five cities across Vietnam between 2016 and 2018, using registered private vehicles, as it is a foreign-run transport service.