HCM City's traffic investigators iss fining a Uber car for violating passenger transport regulations. By the end of January 2015, the city's traffic investigators fined 69 Uber cars more than VND323 million (US$15,380) for breaking the law. — Photo giadinh.net

HCM CITY (Biz Hub) — HCM City's traffic investigators fined 69 Uber cars more than VND323 million (US$15,380) for violating passenger transport regulations, as of the end of January 2015.

Tuoi Tre (Youth) newspaper reported that 39 of the 69 cars were not registered for commercial transport business, and 20 did not have badges as per regulations.

According to the city's transport department, Uber was awarded an investment certificate on August 30, 2014, by the People's Committee. The American on-demand car service company is not allowed to do business, manage and operate passenger transport, following the granting of the certificate.

However, Uber is operating a passenger transport business just as traditional taxi companies do. It receives customer requests via a mobile phone app, and decides the itinerary and the price. If customers book a car, Uber sends them information about the driver's name, car licence number and its pickup time. Customers pay for the service with international bank cards.

The department has petitioned the transport ministry to work with related governmental agencies to clarify the details of Uber's passenger transport business.

The transport ministry is checking the details of Uber's partners, and the American company on February 11 requested that the period of scrutiny be extended. The representative confirmed that Uber's partners are applying for badges from Ha Noi City's transport department.

The American firm also requested the ministry to accept electronic contracts, instead of traditional paper contracts. — VNS