Government allows extension of Uber and Grab pilot operations

Deputy Prime Minister Trinh Dinh Dung has just given instructions on piloting the application of science and technology in supporting passenger transport connections under contracts.

Accordingly, the Deputy Prime Minister agreed to extend the pilot period of implementing the application of science and technology to support the management and connection of passenger transport activities under contracts under the direction of the Prime Minister in Official Dispatch No. 1850/TTg-KTN dated October 19, 2015 until the Decree regulating the business and conditions for business of transport by automobile (replacing Decree No. 86/2014/ND-CP) is issued and takes effect.

Uber and Grab are facing fierce opposition from traditional taxi companies.

The Deputy Prime Minister assigned the Ministry of Transport to study and absorb opinions from the Ministries and agencies: Public Security, Justice, Industry and Trade, Finance, Science and Technology, Information and Communications, Hanoi People's Committee, fully assess the advantages and limitations during the pilot period, as a basis for supplementing regulations to manage the pilot activities, ensuring strictness, transparency, healthy competition and creating equality between types of transport businesses in accordance with the direction of the Prime Minister in Official Dispatch No. 1850/TTg-KTN dated October 19, 2015.

At the same time, review and complete the draft Decree regulating the business and conditions for business of automobile transportation according to the direction of the Prime Minister in Document No. 1012/VPCP-CN dated January 26, 2018, and submit it to the Prime Minister before March 31.

In Vietnam today, two types of passenger transport that apply science and technology in supporting connections are operating: Grab and Uber.

Previously, according to Decision 24/2016 of the Ministry of Transport, allowing a pilot application of science and technology in supporting passenger transport connections under contracts, lasting for 2 years, starting from January 2016 and ending in January 2018.

In Vietnam today, two types of passenger transport that apply science and technology in supporting connections are operating: Grab and Uber. Both types are receiving support from users and customers thanks to reasonable costs compared to traditional taxi transport.

However, most traditional taxi transport businesses are strongly opposing the operation of the above two types because they believe that this is a mode of transport that violates many regulations, causes market devaluation and seriously affects the operations and sales of the companies.