Uber, which offers low-cost rides by both car and motorcycle on an integrated mobile phone app, has had its application to operate on a trial basis rejected for a second time in Vietnam, according to local transport authorities.
The ride-hailing company applied for a license after local regulators outlawed Uber’s smartphone app-based services in November 2015, due mainly to its failure to establish an independent legal entity in Vietnam.
Market regulators declared that the company behind the ride-sharing service that controls Uber in Vietnam should be held responsible for the application rather than its Vietnamese business unit which has yet to be recognized as a legal entity by local authorities.
Transport authorities have also asked Uber Vietnam to make changes to its app by registering itself as licensed ride services, apart from existing services such as “consulting and management” and “market research and public opinion polling”.
In an attempt to regulate ride-sharing services, Vietnamese regulators have made a list of transport companies which can provide the services with fleets of nine-seat minicabs without roof-mounted signs.
GrabTaxi, a Malaysia-based company, is the only foreign-run transport service allowed to operate in five cities across Vietnam using registered private vehicles between 2016 and 2018.
Uber, however, has been singled out for providing ride-hailing services without legal permission.