Traditional taxi technology innovation

Traditional taxi companies are looking for every way, prioritizing innovation and applying information technology to management...

Taxi calling software application.

Faced with the reality of having to compete fiercely with Uber and Grab taxis, traditional taxi companies are looking for every way, prioritizing innovation and applying information technology to management to change the way of operating, reduce prices, and improve service quality.

Innovate to survive

One of the biggest shortcomings of traditional taxis in recent times is the lack of communication channels between drivers and passengers. Along with that, manual management and operations, small scale and especially high empty car rate. Meanwhile, Grab and Uber have the outstanding advantage that with just smartphones with 3G or Internet connection, passengers can quickly call the nearest car, know the route and estimated amount to pay, saving a cost. With this advantage, traditional taxi companies are really facing tough competitors and are being "encroached" by Grab and Uber taxis.

Currently, Mai Linh is investing in developing the Open 99 taxi booking application software similar to GrabTaxi and Uber, developed by Mai Linh Northern Joint Stock Company and applied at some branches in provinces and cities. Faced with this challenge, traditional taxi companies are scrambling to find solutions to innovate themselves by applying technology similar to Grab or Uber to survive. Mr. Ho Chuong, General Director of Mai Linh Northern Joint Stock Company, said that technology development and application are mandatory in the current trend. "If traditional taxis apply software, they will gain many benefits, both increasing competitiveness because of available infrastructure, improving management, improving service quality, and moving towards lowering fares," Mr. Chuong said, adding that with 15,000 Mai Linh cars, when applying technology, management efficiency will be increased three times to 45,000 cars, while the number of managers will still be equal to 15,000 cars.

Some other companies (such as Group, VinaSun...) have also been researching and developing software similar to GrabTaxi, Uber to use two parallel connection channels: Traditional telephone switchboard and software to connect with customers. While Vinasun has officially deployed the luxury car service Vcar, Group is in the testing phase.

However, apart from large-scale enterprises, not all taxi companies have the capacity to apply software because the cost is not small, sometimes tens of billions of VND. Mr. Pham Duy Kinh, representative of Victaxi, said: "We are aiming to apply advanced software in business operations. However, how to apply it and at what time to suit the enterprise's capabilities is a matter that must be carefully calculated and requires support policies from the State."

How to manage taxi software application?

Many taxi companies applying technology have been and are preparing to be born, creating a vibrant competitive taxi market. However, the problem of how to manage this type of business is not a simple problem. According to Mr. Ho Chuong, it should be managed by a mechanism like traditional taxis because Uber or Grab are essentially taxis. Taxis applying software can have their own brand identity, giving you an advantage for customers, better management, being favored by customers, and having to compete fairly.

On the other hand, Mr. Do Quoc Binh, Chairman of the Hanoi Taxi Association, said that the nature of Grab and Uber is taxi, the only difference is that they are charged on APP (software). If they operate under contract as they are now, no one will be able to become a traditional taxi and all traditional taxis will switch to running Uber or Grab.

Mr. Tran Quang Binh, Director of the Transport Department (Vietnam Road Administration) said: “In the draft Decree replacing Decree 86, we propose that taxis can use software applications or both software applications and operate in the old form, but when there is a software application, there must be taxi lights, and the words “Taxi E” must be displayed to distinguish them from traditional taxis.

According to Mr. Binh, the software must be registered with the State management agency. There are contents that the State management agency will specify to ensure the rights of passengers. "Taxi businesses must be managed by enterprises and cooperatives according to the provisions of the Law on Road Traffic. We plan to add some more detailed regulations in the circular guiding the implementation of the decree, including the implementation of tax obligations for taxis using software to ensure fairness with traditional taxi units," said Mr. Binh.

According to Traffic