The Hanoi Taxi Association have continued their vendetta against app-based taxis with a proposal to the municipal Department of Transport to ban their rivals from using roads traditional taxis can’t use.
According to Do Quoc Binh, the association chairman, said that currently many streets in Hanoi ban taxis. However, in reality, app-based cars such as Uber and Grab can still operate in these streets, which they claim is unfair competition.
Traditional taxis have to need a badge, logo and meter. They are also tied to strict business regulations such as parking, registration licensing, roof-signage, listed fares and drivers’ uniform; but Uber and Grab aren’t.
Uber is paying 3% value added tax, while local taxi firms area paying a 10% VAT and 20% corporate income tax. Uber now keeps 20% of a fare and returns 80% to the driver. Grab and Uber continue to offer huge discounts to passengers to grab market share from taxi companies. They are 25-50% cheaper than traditional taxis, and passengers are informed before the ride how much it will cost.
Binh claimed that the boom of Uber and Grab has added to more pressures on Hanoi’s serious traffic jams, so it was necessary to manage them like traditional taxis.
- Hanoi taxis are fighting Uber and Grab cabs.