Vietnamese taxi company Vinasun sues Grab for unfair business practices – here’s why

GrabTaxi, which is accused of breaking advertising laws, is being sued for US$1.85m in lost profits

PUBLISHED : Wednesday, 07 February, 2018, 4:31pm
UPDATED : Wednesday, 07 February, 2018, 6:04pm

By Sujin Thomas

Vietnamese taxi operator Vinasun has taken popular ride-hailing service Grab to court in Ho Chi Minh City, claiming that the “illegal operations” of the latter in Vietnam caused its company revenues to fall in 2016 and 2017.

A court heard that GrabTaxi Vietnam ran promotions for more than 90 days in a single year, which is against the law, reported VnExpress.

Vinasun said it has submitted documents, photos and videos to the court prove this.

It is seeking VND42 billion (US$1.85 million) in compensation for loss in profits over the two years which is said it suffered as a result of Grab’s operations.

Vinasun’s deputy director-general Truong Dinh Quy further alleged that Grab only has to follow three government regulations, while it has to observe 13, which has created unfair competition, reported Viet Nam News.

Grab’s laywers claim that Vinasun’s allegations are baseless and that its evidence and methods of calculations are questionable.

Grab also said that it has been operating since 2016 on a trial basis approved by the Ministry of Transport and that if Vinasun wants compensation, it should file a suit against the ministry instead.

Along with Grab, nine other companies currently operate ride hailing businesses in the country.

In January, the Ministry of Transport said that Grab and Uber will be officially authorised in Vietnam after completing trial runs but stricter controls that govern local transport companies will be imposed on them.

A new draft decree is in the works requiring Grab and Uber in Vietnam to register for licences to carry out “electronic businesses” and its vehicles must have identifiable logos on both front and back windows.

Read the original article at Business Insider