After ongoing legal struggles with Uber, the Ministry of Transport recently announced it will launch its own app to compete directly with the ridesharing enterprise. This is a move by local authorities to establish order in a relatively blue ocean market after months of attempting to control Uber and other similar services, reports Thanh Nien.
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Despite having a large user base, Uber and its likeminded competitors are not registered in Vietnam. As such, they are not operating in a legal space and many personal cars do not meet the necessary requirements to transport passengers.
To combat this issue, the ministry announced that only official transport companies are allowed to be affiliated with its app, banning personal cars from being used as taxis.
Despite facing legal action, Uber has grown rapidly in popularity since its Saigon launch in July 2014. Following in the company's footsteps are other apps, such as Grabtaxi, which also aim to meet rising consumer demands for convenient transport in the city.
[Top image via Yalantis]
