Sunday, November 18 2018

VietNamNews

Vinasun’s suit against Grab comes to the court

Update: October, 18/2018 - 09:00
The HCM City People’s Economic Court on Wednesday began hearing the suit filed by taxi operator Vinasun against ride-hailing service Grab, accusing it of unfair business practices and demanding compensation of the VNĐ42 billion (US$1.86 million) worth of losses it has suffered. — Photo vietnamnet.vn

HCM CITY — The HCM City People’s Economic Court on Wednesday began hearing the suit filed by taxi operator Vinasun against ride-hailing service Grab, accusing it of unfair business practices and demanding compensation of the VNĐ42 billion (US$1.86 million) worth of losses it has suffered.

Once earlier the court had begun the trial but deferred it on Grab’s request.

At the trial on Wednesday, Grab once again asked for an adjournment because Cửu Long Company, which had been in charge of assessing the losses suffered by Vinasun, was not represented in court.

It claimed defining the losses would be very important and would affect the entire trial.

But HCM City People’s Procuracy official rejected the demand saying all documents related to defining the losses have been filed.

Vinasun, once a dominant player in the southern taxi market, has seen its market share gradually taken away by Uber and Grab.

The latter, which recently acquired Uber in Việt Nam, continues to grow in popularity, especially since the number of smartphone users in the country is rising.

Vinasun claims the “illegal” operations of Grab in Việt Nam were to blame for a fall in its revenues in 2016 and 2017 of VNĐ42 billion.

A Vinasun spokesperson said his company based its complaint on the Trade Law and the Government’s Decree 37 issued in 2006, which clearly states that the duration of total promotions in a year must not exceed 90 days and each promotion programme should not last beyond 40 days.

Besides, businesses seeking to offer promotions must register with the municipal or provincial commerce department, but Grab did not do so, he said.

Exploiting the lack of clear regulations for software-based transport services, Grab offered “rampant” promotion deals and discounts, which was similar to dumping of manufactured goods, he said.

Vinasun said while it needs to comply with 13 regulations, Grab has to follow only three, creating unfair competition.

There was a crowd of drivers from Vinasun and Mai Linh, another well-known taxi company, gathered at the court on Wednesday morning, waiting anxiously for the outcome of a suit that could determine their future. — VNS


 

 

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