Thousands of taxi drivers leave jobs
  • |, TP | October 24, 2017 08:31 PM
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Vinasun, one of Vietnam’s biggest taxi firms, saw nearly 2,000 staff leave in the third quarter of this year due to fierce competition with app-based taxi services.

According to Vinasun, by the end of the third quarter, the company employed 7,292, down nearly 2,000 compared to by late June this year.


Vinasun saw nearly 2,000 staff leave in the third quarter of this year

In a document sent to the prime minister in May this year, Vinasun said that it is facing many operational difficulties due to competition from Uber and Grab.

Vinasun earned net revenues of VND547 billion (USD24.8 million) in the third quarter, the lowest level since 2011 while its after-tax profits in the period dropped 50% over the same period last year to VND47 billion (USD2 million).

The firm’s total revenues of the Jan-Sept period to VND2.45 trillion (USD111.3 million), fulfilling just 58% of the year’s set target.

In order to cut the loss, Vinasun has actively been using app-based taxi services as well boosting the franchise. The company recently launched a service to book rides via Facebook.

This year, Vinasun has set a goal to reach revenues of VND4.25 trillion (USD187.3 million) and profits of VND205 billion, down 10.6% and 34% on-year.

Mai Linh Group also saw nearly 6,000 staff leave in the first six months of this year which they claimed was due to competition with app-based services.

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