Vietnam reconsiders legalisation of Uber

13:57 | 10/12/2014
Vietnam may reconsider legalising online car-booking company Uber Technologies Inc., after previously determining that the ridesharing service was an unfair competitor to traditional taxi services.

Uber was accused of flouting rules and regulations and muscling its way into Vietnam’s taxi business.

Minister of Transport Dinh La Thang last week said that: “Obviously this type of business is priced lower than regular taxis, and therefore people find it more beneficial to use. If the type of business software used by Uber is not yet included in Vietnam’s legal system, then it is our responsibility to adapt the system and legalise it.”

Thang said the ministry needed to find a way to better manage the service, “but also allow it to continue being a convenient option for people in Vietnam”.

Social ridesharing app Uber has just started to gain traction in Vietnam, and has been a bother to taxi markets around the world by cutting out the red tape and regulations in order to offer lower prices, and it looks to be replicating that success in Vietnam.

Uber offers car services in 250 cities in 50 countries now, up from 60 cities in 21 countries just a year ago. With an easy-to-use app in Asia, North America and Europe, Uber links drivers with customers who need rides.

Speaking with reporters in Hanoi on December 4, Mike Brown, regional manager of Uber, said the company was operating legally in Vietnam as it had registered its business with the government and that all Uber cars were regulated as per the local transport law.

Brown added that all drivers registered with Uber had to undergo strict tests to ensure quality and safety in accordance with the company’s high standards.

The company is fighting regulatory battles in Chicago and Miami. In Nevada some of its cars have been impounded. Anti-Uber protests have broken out in Europe. In Berlin and Frankfurt the service has been banned.

By By Minh Trang

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