Deputy Minister of Transport Nguyen Hong Truong said technology would help the transport sector improve in response to the Hanoi Transport Association appeal to halt Uber and GrabTaxi's operations.
Deputy Minister of Transport Nguyen Hong Truong
Truong believed that the Hanoi Transport Association did not fully understand what Uber and Grab taxis are. He said Uber and GrabTaxi cars connect passengers and transport firms. That's why the ministry had proposed to let GrabTaxi pilot its operation in five major cities.
"This kind of technology can help transport firms have more e-contracts," he said. "Hanoi Transport Association is worried that unlicensed taxi firms and drivers can take advantage of Uber and GrabTaxi to operate but this just need strict management and punishment."
In regards to worries about tax avoidance, Truong said, "As far as I know, the Ministry of Finance and General Department of Taxation are not very worried. They will check and collect the taxes in the coming time."
Uber and Grab taxis are becoming more popular
Even though Uber and GrabTaxis are legal as matching services, the manner in that they are operating has raised much concerns from industry rivals. According to Hanoi Transport Association, Uber and GrabTaxi cars do not have the required logos and taxi signs. The association also accused Uber and Grab taxis of price dumping and regulatory violations.
"They keep operating on streets that taxis are banned. This causes congestion and doesn’t match the city's traffic planning," said Nguyen Anh Tuan, vice president of Hanoi Transport Association.
Several nations have banned Uber, among them France, Belgium, Spain, Germany, Thailand and even some US states. The most common reason is that Uber was not a registered taxi operator, and had launched its operations without seeking proper permits from authorities.
