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Vietnam Puts a Stop to New Ride-Sharing Licences

Vietnam Puts a Stop to New Ride-Sharing Licences ride hailing uber grab mailinh vinasun

The transport ministry has requested that no more new vehicles be licensed to add to the existing fleets of ride-sharing service providers, putting a stop to the number of cars able to join the pilot program, according to Tuoitrenews.

 

Pilot Program getting Disruptive

MoT asked the local Department of Transport to stop allowing more cars to participate. This decision is aimed to avoid an outbreak of new taxi services using technology, which could pressure the transportation infrastructure and would prove unfair to other transportation service providers. The ride-sharing cars had been putting pressure on local traffic infrastructure and creating unhealthy competition with traditional taxi and transportation operators.

 

Affected Ride-sharing Players

  • Uber
  • Grab
  • Mailinh Car
  • Vinasun
  • Home Car
  • Vic. Car
  • LB Car

 

Too Many Participants

As of April 2017, the number of contracted passenger automobiles to join these pilot projects was 13,500, belonging to 235 enterprises in Hanoi, Ho Chi Minh City, and Khanh Hoa province, according to MoT.

There are 19,200 traditional taxis operating in Hanoi, the number of ride-sharing participant applications has increased to 7,000.

In Ho Chi Minh City, where 11,000 traditional taxis operates, had 22,000 applications in April!

According to a leader of the Ho Chi Minh City Department of Transportation, this number went “far beyond their imagination.”

 

What is the Pilot Program?

Is a two-year pilot programme called “Application of information technology in supporting the management and connection of commercial passenger transportation by contract”  launched by the Transport Ministry in 2015 was expected to provide lessons for an improved legal framework for unconventional taxis.

 

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