Lalamove adjusts fares to share difficulties with customers

Lalamove is going against very much against the flow by lowering fees

Going into effect on December 5, Decree No.126/2020/ND-CP guiding the Law on Tax Administration 2019 assigns the responsibility to declare tax for driver-partners to e-hailing platforms, stipulating a VAT rate of 10 per cent compared to the 3 per cent set previously.

As a result, ride-hailing and food delivery service providers increased fares and commission rates. Notably, Grabcar and GrabBike fees were raised by around 5-6 per cent, starting from December 5.

Food delivery app Baemin recently increases commission rates from 20 to 27.2 per cent.

A representative from Be Group said that the company was waiting for a circular detailing the decree to identify taxable incomes and support its drivers to comply with the tax regulations.

Gojek Vietnam said there might be some adjustments but it was still studying options.

Meanwhile, Lalamove Vietnam has decided to adjust the cost of delivery service by motorbike in a direction that benefits customers. The decision took effect from December 15, 2020.

Lalamove’s flexible adjustment is a plus-point in the strict battle between delivery players over market share. In addition, with a commitment to accompany customers, Lalamove Vietnam hopes that the decision will help them solve part of the cost burden, assisting businesses to overcome their current challenges.

Nguyen Duc Loi, managing director of Lalamove Vietnam said, “2020 has been ripe with fluctuations for businesses, especially small- and medium-sized enterprises and individual business households. Thus, in order to share customers’ difficulties in these challenging economic circumstances, we will continue to roll out more optimal shipping solutions to more effectively support customers in Vietnam.”

Lalamove was established in late 2013 under the name EasyVan. The Hong Kong delivery service has come to be known for delivering goods within an hour, and was named the “Asian Uber.”

Lalamove officially launched operations in Hanoi in October 2018, following a year of operations in Ho Chi Minh City. Focusing on clients in urban areas and committing to deliver goods within 55 minutes, Lalamove was forecast to be a redoubtable opponent to Grab and GoViet.