Change could be on the way for Grab

Friday, Feb 22, 2019 16:28

Grab cars could soon be managed like taxis. — Photo VGP

Government regulation on Grab car operation could be on the way.

A draft decree recently submitted by the Ministry of Transport to the Government includes managing cars booked via ride-hailing applications in the same way as taxis are currently regulated, aiming to create an even playing field between traditional taxi firms and apps like Grab.

The decree also aims to slash regulations to make life easier for taxi firms.

If managed like taxis, Grab would have to comply with established regulations on taxis, which are more stringent than the rules the firm currently follows.

The Ministry of Transport said that there had been controversy about how to manage cars which provide passenger transportation services via ride-hailing apps, adding that how they were managed would have significant impacts on the transportation business.

The ministry, however, said the operation of ride-hailing cars of below nine seats were similar to the operation of taxis in term of operation area, passengers and the manner of booking, creating the need for the draft proposal.

However, the ministry admitted that managing them like taxis would have limitations but would promote the use of technology in transportation services. In addition, this would help ensure a fairer playing ground between ride-hailing apps and traditional taxi firms.

The ministry encouraged all transportation services companies to use technology, it said.

At the same time, in the draft, the ministry proposed several regulations on taxis be removed.

Specifically, taxi companies would no longer need to register their colours with management agencies, there would be no regulations about uniforms for drivers and no requirements for the minimum number of cars for a company to own.

In addition, the regulation about the minimum number of taxies operating in a locality would be abolished, the ministry said.

Operation centres would also no longer be compulsory.

The draft also said that taxis would be prioritised in arranging stops for pick-up at stations, airports, ports, tourist sites, shopping centres and sport centres.

The ministry said better arranging of pick-up stops for taxis would significantly reduce traffic congestion and improve transportation services.

Proposal for GoViet

HCM City People’s Committee has proposed the Ministry of Transport allow ride-hailing app GoViet of GO VIET Technology Trading Company Limited participate in the pilot project of applying technologies in passenger transportation operation.

The municipal authority said the city encouraged more firms to apply technology in passenger transportation to prevent monopolies and create a healthy market through which services quality would be enhanced and fees would be lowered.

In HCM City, four companies are participating in the pilot project, namely Grabtaxi Company Limited, Anh Duong Viet Nam Company Limited, Mai Linh Group and GO-IXE Software Technology Company Limited. — VNS

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