Grab incurs heavy losses in 2014-2016

October 28, 2017 | 15:53

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Despite being one of the biggest ride hailing service firms in Vietnam, Grab incurred an accumulated loss of VND938.26 billion ($42.65 million) in the 2014-2016 period, according to the General Department of Taxation (GDT).

The General Department of Taxation announced its findings at a press conference

At yesterday's press briefing, an official of GDT's Inspection Division said that Grab collected a total revenue of VND1.755 trillion ($79.77 million) in the 2014-2016 period. This firm has paid VND9.53 billion ($433,181) in taxes.

As requested by GDT, the Ho Chi Minh City tax agency has recently inspected Grab’s payments between 2014 and 2016. Accordingly, Grab accumulated VND2.286 billion ($103,909) in tax arrears.

Grab started operations in Vietnam in February 2014 and has a chartered capital of VND20 billion ($909,090).

Besides Grab, the other leading ride hailing firm is Uber.

The Ho Chi Minh City Department of Transport has revealed that by the end of September, there were 25,000 under nine-seat cars working in the ride hailing networks of Grab and Uber, more than double the number of traditional taxis that only have 11,000 vehicles.

Grab and Uber and traditional taxies are in a heated race for market share. Along with Vinasun, Mai Linh Group also saw a decrease in employees and net revenue in the first half of this year.

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