Grab may have to operate as taxi firm

MoT's new draft decree would identify Grab and other ride-hailing apps as taxi firms

This information was in the amended draft decree built by MoT to replace Decree No.86/2014/ND-CP on business and conditions for transportation business by automobile.

Accordingly, based on the need to recognise Grab as a taxi firm, MoT asks Grab’s taxi driver partners to install light boxes with the words “Electronic taxi”. Besides, they will have to install software to connect with customers and supply customers information about the drivers’ private information, vehicles, the route, general fares, as well as the fares for the specific routes.

According to MoT, these requirements will create favourable conditions to develop the model of passenger transport cooperation between ride-hailing apps and taxi firms, encouraging the application of technology in the transport sector, while simultaneously creating a more transparent and fair playground for the two sides.

In the amended draft decree, MoT mentioned that at the existing Law on Road Traffic there are no regulations managing the operations of taxi firms receiving payments via electronic channels, however as technology is developing rapidly, MoT wants to cover the area in the new decree.

Besides, taxi associations proposed authorities to build regulations to make ride-hailing vehicles easier to identify by equipping them with uniform features.

MoT will submit the amended draft decree to the government for approval.

It is not the first time that MoT expressed that Grab needs to be managed as a taxi firm.

Previously, at a meeting on the draft decree on business and conditions for transportation business by automobile organised in March (at the time Uber had yet to leave Vietnam), Minister of Transport Nguyen Van The stated that the operations of Uber and Grab and traditional taxi firms are similar.

Thus, if Uber and Grab agree to operate under the management model applied to traditional taxi firms, they will be permitted to maintain operations, otherwise, they have to leave Vietnam.