VietNamNet Bridge - Besides Uber and Grab, seven more taxi firms have joined the so-called ‘technology taxi’ market, providing convenient services at low prices. 

However, this has raised concern about the loss of control over means of transport and traffic congestion.

In Vietnam, services provided by Uber and Grab are called ‘technology taxi’, or taxi services based on apps.

Instead of publicly reacting to the development of Uber and Grab, some Vietnamese businesses, especially taxi firms, have quietly launched services similar to Uber and Grab.

Thanh Cong taxi firm, for example, has launched Thanh Cong App, using cars with no lamps on the roof and no stamps on the sides. The cars look like personal cars used by Uber and Grab.

“Thanh Cong Car provides under-contract transportation services,” a representative of Thanh Cong said. “We launched the service to satisfy passengers who want to travel on roads that prohibit traditional taxis.”

Taxi Mai Linh has also developed Mai Linh Taxi app with the appearance of a ‘VIP’ taxi cars with no lamp and stamp. Vinasun and Taxi Group also have similar special taxi cars.

A report of the Ministry of Transport (MOT) shows that the number of taxi e-hailing services has reached nine. In HCMC, there are 22,000 under-7-seater taxis registered to operate as a technology taxi, while there are over 10,000 in Hanoi.

Analysts said that despite strong protests from traditional taxi firms, technology taxis will continue to develop as passengers choose services which are more convenient and cheaper.

An analyst said that traditional taxi firms had two years to realize that Uber and Grab would be rivals and prepare for the onslaught. However, taxi firms only tried to improve to compete with rivals in the same business field – traditional taxis.

However, the future of Uber and Grab is unclear. 

The Hanoi and HCMC local transport departments have proposed measures to stop the increase of vehicles in order to ease pressure on transport.

Nguyen Van N in Nam Tu Liem district in Hanoi said he bought three Kia Mornings one year ago and worked for Uber and Grab. 

In the first few months, he could earn VND12 million per car every month. However, as the number of passengers decreased, the income also fell. He has sold one of the cars, incurring a loss of VND100 million.

In related news, MOT on Tuesday said it had sent a document requiring Grab Taxi and Uber Vietnam Company to stop ride sharing service for contract cars because it breaks current regulations.

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