Vietnam's Ministry of Transportation has instructed local officials to stop licensing new vehicles for app-based ride-hailing services.
Tuoi Tre reports that these services have expanded rapidly in Hanoi, Saigon and Khanh Hoa province in recent months. Official statistics show that as of this April over 13,500 cars were being used in the ride-hailing industry nationwide.
These include vehicles from seven companies allowed to operate under a pilot program by the ministry: Uber, Grab, Mailinh Car, Thanhcong Car, Home Car, LB.Car and Vic.Car.
According to the news source, the decision follows complaints from the Hanoi and Saigon transport departments claiming that the huge fleet of cars is straining road networks and creating unhealthy competition with traditional taxis.
Ride-hailing apps have become especially popular in Saigon, Tuoi Tre shares, where there are 22,000 app-based cars, double the number of regular cabs and far above the official statistics. Hanoi is home to around 7,000 on-demand cars compared to nearly 20,000 taxis.
The surging popularity of Uber and Grab has led to stiff competition in the transportation sector, and even violence at times.
[Photo via Duc Vuong Hotel]
