Could this be the beginning of the end for Uber in Vietnam?

Shortly after its launch 6 months ago, local taxi firms began to complain that Uber was “damaging the domestic taxi service market” since it’s not a registered business, doesn’t pay taxes and undercuts the prices of local taxis. With lower administrative fees, Uber drivers charge VND10,000/km while local taxi firms charge VND16,500/km.

Initially, authorities were unsure how to handle the situation, as “current laws do not clearly stipulate whether such a service is legal.”

But powerful, well-connected local taxi firms seem to have caught the ears of relevant agencies. At a recent meeting, representatives from the HCMC Tax Department echoed their statements, labeling the company “illegal.” 

Last Friday, a team comprised of inspectors from the municipal Transport Department and traffic police officers hit the streets, slapping fines on Uber drivers for operating an unlicensed taxi business.

Beyond Uber's recent privacy scandal, taxi drivers around the world have taken to the streets to protest the service for the same reasons as their Vietnamese counterparts.

Earlier this year, transportation authorities in Seoul banned Uber and launched their own app for registered taxis.

Perhaps HCMC will follow suit.

Update: Uber has posted a response to the crackdown on their blog.