Mai Linh Group has announced its financial report for the first half of this year. According to the report, group’s net revenues were estimated at VND1.72 trillion (USD77.2 million) between January and June this year, down 5% on-year.
Nearly 6,000 staff of Mai Linh Group left their jobs in the first half of this year
Despite the slight revenue decrease, operational costs increased sharply, causing a loss of VND48 billion (USD2.1 million) for the firm compared to VND25 billion (USD1.13 million) during the same period last year.
By late June this year, the group’s accumulated losses reached nearly VND800 billion (USD36.3 million), accounting for some 80% of its registered capital.
The report also indicated that up to 6,000 staff had left their jobs during the Jan-June period with the majority being drivers, equal to 20% of the group’s total staff. The group currently employs 24,000 people.
After leaving Mai Linh Group, many drivers have turned to work for app-based taxi services like Uber and Grab. The group has announced to recruit an additional 2,600 staff, including 2,500 drivers.
Ho Huy, the group chairman, attributed Uber and Grab’s competition as contributing to Mai Linh’s problems in 2016.
Earlier, Vinasun also sacked up to its 8,000 drivers due to their operational difficulties.
