Hanoi proposes plan to ban Uber, Grab cars from 11 key routes

Hanoi's Department of Transport on Monday asked the municipal People’s Committee to officially ban contract cars with under nine seats from 11 of the city's roads.

Department leaders said that congestion has fallen in the city since contract cars with under nine seats were banned from operating along roads off-limits to traditional taxis as part of a one-month pilot program.

As a result, the department has proposed banning contract cars from entering a number of main roads, including Giang Vo, Lang Ha, Le Van Luong and Truong Chinh, during peak hours from 6-9a.m., and 4:30-7p.m.

Sections of Phu Doan and Cau Giay-Xuan Thuy are already off-limits to contract cars.

According to the department, the proposal aims to curb traffic congestion, while facilitating the construction of key projects and the operation of bus rapid transit (BRT) system.

The roads put forward are scattered across the city and alternative routes are available, so the ban would not affect commuters or public transport, it said.

Hanoi already bans taxis from operating on some roads during peak hours, so it's only fair that contract cars are treated in the same way, department leaders said. 

Hanoi currently has more than 15,000 app-based taxis running on a pilot scheme, including 11,400 Grab cars and 2,400 Uber cars.

Grab and Uber arrived in 2014 and operate both car and motorbike taxi services. The two services have been running on a trial basis since early 2016, but have been caught up in a war with traditional taxi drivers.

Many taxi firms have accused Grab and Uber of “unfair competition” that has hindered their businesses and caused thousands of drivers to quit.