Grab proposes Vietnam to remove administrative procedures that are hindering the sharing economy, as well as promote the development of electric vehicles.
Dang Thi Thuy Trang, director of external relations for Grab Vietnam at the Sustainable Development 2023 Conference organised by Vietnam Investment Review in Hanoi on November 16, outlined the companies hopes and plans for the future.
After nearly 10 years of operating in Vietnam, Grab has succeeded in building a platform to optimise benefits to all parties, namely driver partners, restaurants, eateries, and customers, she said.
She said that the secret behind this success came from the process of continuously updating technology to develop new features, from creating heat maps for guiding drivers to move to crowded areas or location-sharing feature between drivers and passengers, helping both parties find each other more easily.
“We are constantly implementing research and development (R&D) so that partners on the Grab platform gain maximum benefits. Drivers have more rides, increasing income; restaurants save shipping costs and users also save time and money," Thuy Trang said.
Typically, the regulation only signs transport contracts with renters who would like to rent the whole vehicle (including the driver), which is regulated at the Decree No.10/2020/ND-CP). This makes the service that allows passengers on the same journey to share the same ride impossible to deploy. While this is a typical sharing economic model, it has been effectively deployed in many other countries such as Singapore, Malaysia, Thailand, and the United States, helping to optimise vehicle usage efficiency save resources, and reduce traffic congestion.
“Therefore, Grab recommends amending the regulations to allow ride-sharing services on the same contract ride, especially shared rides that are connected and arranged transparently through an online car booking platform," the Grab Vietnam representative said.
In addition, according to Grab Vietnam, regulations on car transport business management are also limiting the optimisation of vehicle use efficiency. Specifically, current regulations allow each means of transport to only transport passengers or transport goods, depending on the licensed business vehicle badge. This regulation causes a waste of resources when numerous vehicles such as under-nine-seat cars can be used to transport passengers and normal goods.
The use of under-nine-seat cars for multipurpose has been deployed safely, effectively and smoothly in many countries in the region, such as Singapore, Thailand, and the Philippines. Therefore, Grab proposes that management agencies consider and amend regulations to allow the use of multipurpose cars to ensure safety and efficiency.
In addition, Grab has also cooperated with partners in many countries in the region to promote electric cars. Using electric vehicles is the right call. However, the implementation roadmap also depends on many objective factors such as the market, supply, and support ecosystem. In Vietnam, the ecosystem supporting electric vehicles has yet to develop. Thus, Grab evaluates that it will be difficult for businesses to invest and convert to such technology, especially for digital platforms that do not own vehicles.
“Grab proposes that the government builds a suitable roadmap to develop electric vehicles, through diversifying the supply of electric vehicles, promoting public-private cooperation to invest and upgrade infrastructure," Trang said.
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