Grab defends expansion proposal following ministry’s rejection

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Ride-hailing firm Grab has expressed disappointment with the Ministry of Transport’s opposition to the firm’s operation expansion proposal.

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Grab Vietnam earlier asked for the Ministry of Transport’s approval to expand its GrabTaxi service to other provinces and cities

Grab Vietnam earlier asked for the Ministry of Transport’s approval to expand its GrabTaxi service to other provinces and cities of Ninh Thuan, Dong Thap and Gia Lai not included in the original pilot programme.   

The ministry, however, refused, saying that Grab was still running its service on a trial period basis in Hanoi, Da Nang, Ho Chi Minh City, Khanh Hoa Province and Quang Ninh Province.

The Ministry of Transport said they were keen to see the use of technology in improving services but it would only be applied to licensed firms and vehicles. The firms must obey the regulations and tax responsibilities to ensure a healthy competition.

Grab Vietnam was also asked to not sign contracts and use their technology with drivers without permission from local departments of transport.

Following the ministry’s rejection, the ride-hailing firm released a statement stating its application GrabTaxi was licensed to operate nationwide in line with e-commerce regulations.

GrabTaxi is among several services which are integrated into the Grab applications which have been registered by the Ministry of Industry and Trade as an e-commerce platform which can operate nationwide under the ministry’s Decision 24.

Meanwhile, the pilot programme which restricts the business operation in five provinces is only applicable to GrabCar.

Grab said in the statement that its GrabTaxi service did not interfere in the operation, management and fares of taxi companies, while reaffirming its compliance with the law. The firm claimed to always abide by the law and would not allow GrabCar to operate outside the MoT`s designated cities and provinces.

Early this year, Grab was requested to stop operations in Thua Thien - Hue, Ba Ria - Vung Tau and Lam Dong provinces.

By late March, Grab confirmed its acquisition of Uber`s South-east Asia operations, stirring concerns over a potential monopoly in the region`s ride-hailing market.

Source: VietNamNet

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