Le Quang Nam, deputy chairman of the municipal People's Committee, said the suspension would be applied for taxi services and other contracted vehicles with under nine seats, including ride-hailing services.
Motorbikes are also suspended from transporting passengers, and ride-hailing services have to stop delivery services as well.
All drivers of taxis, contracted vehicles and ride-hailing services would need to medically declare themselves and be tested for Covid-19, he added.
The move followed several coronavirus outbreaks recorded in the central city. One of the latest cases confirmed was a GrabCar driver who had attended two weddings and driven several passengers before he was found infected. Contact tracing efforts in the city have revealed that several people working for taxis and other ride-hailing services have been infected with the coronavirus after making contact with previously confirmed cases.
Da Nang, which has recorded 135 coronavirus cases in the community in Vietnam's latest Covid-19 wave, has already suspended non-essential activities like bars, dance clubs and massage parlors. It has also banned on-location food and beverage services, and banned gatherings of more than five in public spaces.
Vietnam has seen 1,177 community cases in 27 cities and provinces since April 27 and recorded two deaths of Covid-19 patients, increasing its national coronavirus death toll to 37.