After Grab announced the launch of GrabTaxi in Khanh Hoa, the provincial Department of Transport said operation of the ride hailing services firm was not licensed in the central province.

Nguyen Cong Dinh, director of the Department of Transport, was quoted by Nguoi Lao Dong (The Labourer) online newspaper as saying that Khanh Hoa had not granted a licence for Grab’s operation due to the province’s overloaded transport infrastructure.

The transport department would work with Grab on this issue.

Due to the overloaded infrastructure, the province wanted Grab to cooperate with exiting taxi operators in the province to set up its service rather than introducing more cars.

Previously, the provincial People’s Committee sent a document to the Ministry of Transport about why it had not granted a licence to GrabTaxi.

However, GrabTaxi was reported to be available for booking in Khanh Hoa Province on Monday.

Grab announced its operation of GrabTaxi in Khanh Hoa Province on Sunday after launching GrabTaxi and GrabCar in northern Quang Ninh Province one month ago.

Currently, Grab is present in five provinces and cities, including Ha Noi, HCM City and Da Nang City.

On January 7, 2016, the Ministry of Transport issued Decision 24 on the implementation of a pilot project on contracted passenger transportation in five provinces and cities, namely Ha Noi, HCM City, Da Nang, Khanh Hoa and Quang Ninh, by 2018. — VNS