Transport ministry reconsiders ride-sharing service ban
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The Ministry of Transport has sought opinions from ministries, localities and transportation associations on its recently imposed ban on app-based taxi ride-sharing service.
The ministry recently sent a document to the ministries of police, justice, finance, industry and trade, information and communications; authorities of Hanoi, HCM City, Danang, Quang Ninh and Khanh Hoa and the Vietnam auto transport association and Hanoi and HCM City taxi associations.
In the document, the Ministry of Transport admitted that earlier the ministry requested Grab to stop its ride-sharing service called GrabShare. However, now, the ministry needed to gather the opinion after receiving Grab’s reports on advantages of the GrabShare. Grab has asked for the ministry’s permission for the firm to continue the service.
The Ministry of Transport noted that the ministry wants to get the opinion about Grab’s proposal and also needs recommendations about fines for the violation in this service.
Both Grab and Uber launched GrabShare and UberPool respectively in May this year. The services allow drivers to add additional passengers to their journey in addition to the person who makes the original booking. The service can help save customers around 30% compared to the original booking.
But traditional taxi companies strongly oppose the service, saying that it is illegal and unfair competition.
In June this year, the Ministry of Transport requested the ban on the ride-sharing service, explaining that under the ministry’s Circular 63, transport firms are only permitted to sign one contract per trip. If a GrabCar driver carries two passengers that agree to share their ride with each other, it means they are fulfilling two separate contracts, and therefore in breach of regulations, the ministry explained.
The ministry spuriously claimed that sharing a car with a stranger may result in possible risks for passengers, although such practices are very common among traditional taxi companies at airports.
Questions & Answers
Q.Which government bodies and organisations has the Ministry of Transport contacted for their opinions?
Which government bodies and organisations has the Ministry of Transport contacted for their opinions?
The Ministry of Transport has contacted the ministries of police, justice, finance, industry and trade, information and communications. They also reached out to authorities in Hanoi, HCM City, Danang, Quang Ninh and Khanh Hoa, and auto and taxi associations.
Q.What advantages did Grab highlight to the Ministry of Transport regarding its GrabShare service?
What advantages did Grab highlight to the Ministry of Transport regarding its GrabShare service?
Grab’s reports on the advantages of GrabShare led the ministry to reconsider its ban. The service allows customers to save approximately 30% compared to a traditional, single-passenger booking.
Q.What is the primary concern of traditional taxi companies regarding ride-sharing services?
What is the primary concern of traditional taxi companies regarding ride-sharing services?
Traditional taxi companies strongly oppose ride-sharing services like GrabShare and UberPool. They state that such services are illegal and represent unfair competition to their established operations.
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