Taxi associations complain to NA about Grab

According to the associations representing operators in Hanoi, Da Nang and Ho Chi Minh City, Grab’s current operating model allows it control over fares. It is only registered as a technology company in Vietnam, they said.

Based on a decree on the transportation business, ride-haling firm Grab should be designated as an auto transport business and only allowed to operate once licensed by the Department of Transport, they said.

So it is now operating illegally since it does not have a license and is violating the decree, they added.

They also pointed to Grab’s inadequate display of electronic contracts information, lack of logo on its app interface and other shortcomings.

While it operates in a similar manner to traditional taxis, it does not have to declare its fares, and could inflate them by 200-300 percent at certain times in the day, whereas they have to declare whenever their new fares whenever they adjust them following changes in fuel prices, they complained.

Grab drivers only pay 3 percent value-added tax and 1.5 percent income tax as against 10 percent VAT and 20 percent income tax paid by other transport businesses, they said.

They wanted the National Assembly chairman to inspect Grab’s entire operations to detect violations and inadequacies to ensure objectivity, fairness and transparency in the transport industry.

This is not the first time that taxi associations are complaining to authorities about ride-hailing services.

Asked by VnExpress, Grab said the decree has helped ride-hailing businesses like Grab offer better services to Vietnamese customers, and optimize social resources. "Grab has been licensed in accordance with its registered form of service."

It always works closely with the Ministry of Transport and the Department of Transport in cities and provinces to ensure strict compliance with the decree’s provisions, it claimed.