Ministry of Transport proposes to manage ride-hailing apps as taxis

Ministry of Transport proposes to manage ride-hailing app as taxi (Source:Bizlive.vn)

The Ministry of Transport (MoT) has submitted its opinion requested by the government on the draft decree on business and conditions for transportation business by automobile.

According to the MoT, the pilot programme on using technology applications for private transportation with the participant of Grab, VATO, Go-Viet, and FastGo contributed to increasing the use of science-technology to innovate the transport sector.

During the pilot period, the MoT saw that Grab and other ride-hailing firms’ operations were similar to traditional taxi operators. Notably, both ride-hailing service providers and traditional taxi operators have the same target customers and ordering method, and they are all operating in cites.

The MoT also affirmed that the authorities' management of the operation of cars under nine-seat using the ride-hailing application for private transportation meets the government’s requirement to improve the usage of technology in the transport sector. Besides, it will create a general management mechanism for the authorities for both ride-hailing providers and traditional taxi operators, without impacting transport demand.

Especially, the classification of ride-hailing apps as taxi companies will create a fair playground for both ride-hailing providers and traditional taxi operators, while simultaneously dealing with the disputes between these parties.

Besides, the MoT also mentioned that in case the government decides to manage the ride-hailing service model as a contract between app providers and partner drivers, the government will have to add a number of regulations and business conditions to the new decree in order to create a fair playground for all. Notably, the cars joining the ride-hailing service model could only be used for 12 years, and have to be installed a light box with the words “Electronic taxi,” among others.

Previously in February 2018, when Decision No.24/QD-BGTVT on the pilot scheme for ride-hailing services expired, Deputy Prime Minister Trinh Dinh Dung also assigned the MoT to collect opinion from the Ministry of Industry and Trade and other ministries, the Hanoi People’s Committee, and relevant authorities to re-evaluate the advantages and disadvantages of technology taxis.