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Learn from EU to manage Uber, Grab: Minister

Update: January, 03/2018 - 17:00
Minister of Transport Nguyễn Văn Thể said that the management on Uber and Grab must ensure a healthy competition environment for traditional taxi companies. — Photo vietnamnet.vn
Viet Nam News

HÀ NỘI — Minister of Transport Nguyễn Văn Thể said Việt Nam should learn from the European Union (EU) to manage the operation of companies such as Uber and Grab to ensure fair competition with traditional taxi firms.

At a conference of the General Directorate for Road of Việt Nam on Tuesday, Thể said the management of Uber and Grab remained controversial worldwide.

However, in December, the EU’s top court ruled that Uber should be classified as a transport service and regulated like other taxi operators despite Uber’s argument that it was simply a digital app acting as an intermediary between drivers and passengers.

“We should learn from the EU to manage this service,” Thể said, urging relevant management authorities to raise proposals to manage Uber and Grab following the established regulations and ensure a healthy competition environment.

HCM City Taxi Association recently proposed that the transport ministry regulate Uber and Grab as taxi operators.

The association also suggested that Uber and Grab be banned from using foreign capital source to offer promotions aimed in getting a share of the taxi transport, and then reporting losses to avoid paying taxes.

In a related move, taxi firm Ánh Dương Việt Nam Company (Vinasun) sent a document to the Ministry of Transport proposing that Grab and Uber should also be regulated as taxi operators.

Reuters reported that Uber has transformed the taxi industry since its launch in 2011 and currently operates in more than 600 cities globally.

The boom in Uber and Grab cars in major cities, including Hà Nội and HCM City, during the past three years has pushed traditional taxi firms into a lot of difficulties. — VNS