Since introduced to five largest cities in Viet Nam in 2014, Grab and Uber have been well received by local people due to their low fares and various promotions.
The two companies continued to develop their business strategies with GrabShare and UberPool. With GrabShare introduced, Grab Vietnam promised to alleviate traffic congestion and provide 30% cheaper fares for passengers. Uber was also ready to roll out their UberPool.
Since GrabShare offers much lower fares, many people in Hanoi have made use of this carpooling service, though the concept of ride sharing is still new to Vietnamese people.
However, not long after the carpooling solution was officially launched, the Ministry of Transport expressed concerns over risks for passengers and demanded for removal of this feature. Hanoi Transport Department acted accordingly by suspending this ride-sharing platform in Hanoi.
The decision is justified on the grounds that the service fails to guarantee safety and benefits for passengers. Also, with two separate contracts executed at the same time, it violates the regulation of “one ride, one contract”, applied for contracted cars.
Nguyen Thi Thu An, Grab Communications Director, announced that the company is working closely with the Ministry of Transport to figure out how to operate the new service without any breach of regulations. “We believe that a new feature which brings benefits for people, enterprises and society, will be supported and facilitated,” said she.
First introduced in Singapore last December, GrabShare is now available in the Philippines, Malaysia, Indonesia, and Viet Nam, before being banned. Grab itself is introduced in 55 cities across seven countries. It has just announced its new Research and Development (R&D) in Ho Chi Minh City to develop more opportunities in Viet Nam.
