Uber, Grab conquer airport taxi market

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Uber launched a service package at the flat price of VND150,000 to carry passengers from any location in the inner city of Hanoi. In HCM City, Grab sometimes has a promotional fee of VND20,000 for trips to the airport.
“You will have to pay VND130,000 for every trip to the airport with traditional taxi service, while it’ll take you VND70,000 to go with Grab, and sometimes the fee is just VND20,000 when Grab runs sale promotion campaign,” Tin, a passenger said.
Uber, Grab cars flood airports
Quang Huy in Cau Giay district, Hanoi said the service fee of VND150,000 set by Uber is ‘very reasonable’ which is much lower than the fee of VND200,000-250,000 he has to pay to traditional taxis.
“I wonder if Uber gives any support to taxi drivers, so they can charge so little. However, as a customer, I really like this. And Uber’s services are acceptable,” he said.
However, some passengers complained that it is difficult to catch Uber taxis. Uber drivers tend to refuse to serve passengers, saying that the VND150,000 service fee set by Uber is too low, which cannot bring profit to them.
Hieu, a driver, said with the fee, drivers pocket VND40,000-50,000 for every trip to the airport after paying for fuel and other expenses. He would rather serve passengers within the city to get more profit.Uber drivers confirmed that they won’t serve passengers at the service fees set by Uber.
Reporters also tried to hail Uber taxis and all drivers refused to serve when asked to go to Noi Bai Airport.
Airport taxi firms complain about income
Traditional taxi drivers complained that their income has become unstable, though it is now the high season: children are finishing their academic year and people are beginning to travel.
Quang Truong from Bac Ninh province, an airport taxi driver, said the appearance of Uber and Grab has badly affected his job. He could serve 10 trips a day on the Hanoi – Noi Bai route, but the number has been cut by half.
However, Truong doesn’t think Uber and Grab drivers have better income.
“More taxis in the market means higher competition and lower income,” he said.
Questions & Answers
Q.What are the common complaints made by passengers regarding Uber's airport service?
What are the common complaints made by passengers regarding Uber's airport service?
Some passengers have found it difficult to book Uber taxis for airport trips. Drivers tend to refuse these fares, stating that the fixed VND150,000 service fee set by Uber is too low to be profitable for them after fuel and other expenses.
Q.How have traditional taxi drivers been affected by the entry of Uber and Grab into the airport market?
How have traditional taxi drivers been affected by the entry of Uber and Grab into the airport market?
Traditional taxi drivers report their income has become unstable, even during what is usually a high season for travel. One driver mentioned his daily trips on the Hanoi, Noi Bai route have been cut in half due to the increased competition.
Q.What is the primary reason Uber drivers give for refusing airport rides?
What is the primary reason Uber drivers give for refusing airport rides?
Uber drivers refuse airport rides because they believe the VND150,000 service fee set by Uber is too low. They claim that after deducting fuel and other costs, they only pocket VND40,000-50,000 per trip, making city rides more profitable.
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