Transport ministry to amend law, treat ride-hailing firms like taxis

The 2008 law regulates passenger transport vehicles into five categories: passenger buses on fixed routes, taxis, buses, contract vehicles, and those serving tourists.

But with the appearance of ride-hailing services in 2016, starting with Uber and Grab and then Be, GoViet and FastGo, people correctly point out there is no legal framework to regulate them.

While taxis are subject to regulations on fares, vehicle identification, number of vehicles, tax obligations, and responsibilities toward employees, ride-hailing firms are not.

But the new bill will change that, with the ministry saying all ride-hailing services will be classified as taxis.

It also said organizations and individuals providing software services to support transport connections, which means firms such as Grab and Be, must possess a business license and store data about transactions for at least two years.

The ride-hailing companies will also be subject to regulations on vehicles’ lifespan and driving standards.

Nguyen Cong Hung, deputy chairman of the Vietnam Auto Transport Association, said e-contract vehicles with less than nine seats are basically taxis and need to be managed like taxis, and there is no need to make new laws for them.

The ministry will seek approval for the bill from the National Assembly in May.