Vinasun taxi company announced its revenue of only VND547 billion (more than US$24 million) in the third quarter of 2017, equivalent to 46 per cent of the same period last year.
This is the company's lowest quarterly revenue since 2010.
In the past seven years, Vinasun's revenue grew but it began to decline when Uber and Grab appeared.
For the first nine months of 2017, Vinasun's revenue reached VND2,450 billion (nearly US$108 million), down 30% year over year.
It is notable that in Vinasun's revenue structure, franchise and taxi operation in the first nine months were VND340 billion (about US$15 million), accounting for 14% of total revenue.
This is the result from a change of Vinasun's operation mode in order to compete with Uber and Grab. Instead of being completely self-employed, a part of Vinasun's cars turned into a franchise so in the first half of 2017, it cut nearly 8,000 personnel contracts.
According to Vinasun's announcement, its profit also dropped sharply to VND47 billion (about US$2 million) in the third quarter and VND146 billion (US$6.4 million) in the first nine months of 2017. In the same period last year, the company earned VND241 billion (US$10.6 million) of after tax profit.
It is noteworthy that Vinasun's operating profit fell sharply while its cost of sales and administrative expenses decreased slightly.
Vinasun's stocks have nearly halved its market price since the beginning of the year and are currently traded at VND17,500 (US$0.77) per share.
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