Ministry of Transport 'brakes the brakes' on pilot licensing of Grab and Uber

SetTransportationjust required participating localities to count, accurately review the number and stop granting pilot licenses for technology taxis.

According to the Ministry of Transport, this requirement is to limit the outbreak of technology taxis, which puts pressure on infrastructure and creates inequality with other types of transport services. Currently, the number of technology taxis is increasing beyond control, creating pressure on transport infrastructure and unfair competition with traditional taxis, making management difficult.

At the same time, the cities piloting technology taxis are also aiming to build a large-volume public passenger transport system such as buses, BRT buses, subways, and elevated railways without focusing on taxis or contract vehicles.

Therefore, it is necessary to control the number of vehicles and the number of businesses participating in the technology taxi business - the official dispatch of the Ministry of Transport stated. The Ministry of Transport requested localities participating in the technology taxi pilot to conduct statistics, accurately check the number of participating vehicles, and stop issuing new pilot licenses.

Up to now, the Ministry of Transport has licensed 7 units to pilot the operation of technology taxis called technology-based contract vehicles.

According to Deputy Minister of Transport Nguyen Hong Truong, in the draft amendment to Decree 86/2014/ND-CP on business, business conditions and the issuance of business licenses for automobile transportation, the Ministry of Transport has also included Uber and Grab taxis in its management. After amending this decree, the management of these taxi types will be more equitable.

It is known that according to the technology taxi pilot project of the Ministry of Transport, as of April 2017, the Ministry has only licensed about 13,500 contract vehicles with less than 9 seats to participate, with 235 enterprises in 3 localities: Hanoi, Ho Chi Minh City and Khanh Hoa.

According to statistics from the Hanoi Department of Transport, the number of "technology taxis" in the city has reached 7,000, in Ho Chi Minh City it is more than 22,000, double the number of traditional taxis, far exceeding the management capacity of the locality.

In addition, with their own advantages, "technology taxis" and traditional taxis are entering into fierce competition in terms of price and service quality.

In particular, the advantage is leaning towards technology taxi companies, with operating characteristics such as public fares for the route, reasonable fares, clean and convenient cars.

With their advantages, "technology" taxis and traditional taxis are entering into fierce competition in terms of price and service quality.

However, for traditional taxi companies and especially for management agencies, technology taxis are really a hot spot. Traditional taxi companies are being strongly encroached by technology taxis, while management agencies do not have a legal basis to manage revenue and thereby collect taxes from technology taxis.

Technology taxi operations have also expanded to technology motorbike taxis, and successfully competed with traditional motorbike taxis.

Regarding management, the lobbying campaign launched by traditional taxi companies to limit the operation of the technology taxi model has been somewhat successful. When management agencies continuously organize inspections and supervision, making it difficult for technology taxis to operate. The climax is the document to stop the licensing of technology taxi pilots this time. However, it is not clear whether this requirement applies to the technology motorbike taxi model or not.

According to Dan Viet Newspaper