Hanoi Taxi calls on 77 businesses to join forces to compete with Grab

At the online discussion "Grab acquires Uber, what opportunities for Vietnamese businesses?", Mr.Mr. Nguyen Cong Hung, Chairman of Hanoi Taxi Association, said,Currently, 77 taxi businesses in Hanoi are operating in small groups, each with its own connection channels.

According to Mr. Hung, the Hanoi Taxi Association has proposed to create a common switchboard, but long-standing taxi businesses do not support it. Facing its competitor Grab, the Association has proposed to build an online car booking operation center and is hiring a software company to design it. This is a common trading platform for all taxi companies, helping people coming to Hanoi to download and access the software, and to choose a company based on the name or price displayed.

Many people are concerned that Grab may have a "monopoly" when it no longer has a direct competitor, Uber.

"Currently, technology taxis are like sharks that are aggressively attacking the market, taking advantage of legal loopholes to create unhealthy competition. Hanoi taxis must unite. This must be done immediately," Mr. Hung emphasized.

According to Mr. Hung, transport cooperatives are just a front for Grab/Uber to operate. So, who is responsible for social security? Reality shows that traditional taxis always prioritize the interests of customers, handle complaints fully, and ensure the rights of workers, specifically drivers.

"Decree 86 clearly states that all units with profitable transport connection software must comply with the conditions for transport business management. I propose to define it specifically and clearly and bring it under one authority," said the Chairman of the Taxi Association.

Agreeing with Mr. Hung, Mr. Ho Quoc Phi, General Director of Mai Linh Taxi North, said that Grab’s purchase of Uber would lead to more difficulties for Vietnamese taxis. Previously, Uber and Grab competed with each other, but now they are one and only compete with traditional taxis.

"I suggest that traditional taxi companies unite to compete with Grab," said Mr. Ho Quoc Phi, adding that,Regarding the policy of Hanoi taxis operating together for all companies in the whole city, Mai Linh welcomes and is willing to operate together with other companies. This will create strength to best serve the people.

As the unit directly managing many Uber and Grab drivers, Mr. Nguyen Xuan Tuan, Director of Toan Cau Transport Cooperative, said,The reason why other companies lose to Grab is because they have to invest a lot of assets, but Grab does not. Each Grab account that drives a day must pay a percentage (up to 28% of revenue to the company). With 50,000 accounts, the net amount of money flowing in allows Grab to comfortably use it for price promotions.

Therefore, no domestic transport company currently has enough potential to match Grab and Uber. The more traditional taxi companies struggle, the more they fail. Companies have to spend a lot of money to build a lot of software, but without government support, it will be very difficult to change and compete fairly with Grab.

Mr. Ho Quoc Phi, General Director of Mai Linh Taxi North, believes that Grab's purchase of Uber will lead to more difficulties for Vietnamese taxis.

"Many drivers of the cooperative have reported that they have to go out on the streets, not knowing where to go because Grab is not accepting drivers, and Uber has announced its closure. The government needs to support and do something to help the drivers," said Mr. Nguyen Xuan Tuan.

Mr. Khuat Viet Hung, Vice Chairman of the National Traffic Safety Committee, said that when a giant appears, businesses often feel worried. But Grab's acquisition of Uber is really an opportunity for Vietnamese businesses. Grab's success in Southeast Asia, regaining Uber's market share, is a vivid example of businesses in Southeast Asia, in which Vietnam can grow and stand firm in its own market.