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Hanoi conventional taxis: to change or to disappear
Nguyen Tung 09:52, 2017/07/25
The introduction of Uber and Grab, the major raide- hailing services has sparked an enduring discussion in Vietnam.
The Vietnamese government is allowing the piloting of digital transport contract for under 9 seat vehicles. And as the Vietnamese prime minister Nguyen Xuan Phuc pointed out, “each experiment produces positive and negative effects.”
Uber and Grab has quickly become riders favorite choice because of their convenience, more competitive price and usually better looking vehicles. Since the introduction of Uber and Grab, taxi market in Vietnam’s big cities have undergone  transformations. Vietnamese conventional taxis are developing their own apps to compete including V.Car, Thanh Cong Car, M.Car. The policy of piloting digital transport contract for under 9 seat vehicles have driven Vietnamese conventional taxis to change. As prime minister Nguyen Xuan Phuc said, Vietnamese taxis are showing their adaptability. Vietnamese transport firms are operating towards efficiency through the application of IT and proving that they are able to compete in a transparent and equal market.
The quick development of Grand and Uber has greatly impacted traditional taxis.
The quick development of Grand and Uber has greatly impacted traditional taxis.
Experts said conventional taxi firms could no longer turn their backs on technologies. Vietnamese conventional taxi apps  are developed under  the pressure of Uber and Grab. They have to change themselves to compete fairly with foreign ride-hailing services instead of  relying on state protectionism. They are facing the choice of cutting fares, improve services and apply technologies to compete or being left behind.

The introduction of ride hailing apps, on the other hand,  has created new headache for the state management. At the recent visit to Uber headquarter in the US, the chairman of Hanoi People’s Committee asked the ride hailing company to share its vehicle database with the authority so as for them to know the number of cars and drivers in the network, as well as to manage the personal income tax of drivers conforming Vietnamese legislations. The Hanoi chairman also asked Uber to share and update information and Uber business plan to ensure that Uber operation would not jeopardize Hanoi transport master plan and the city’s transport system.
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