In 2016, a pilot for the application of science and technology to support transport management on a contractual basis was issued, allowing ride-hailing services such as Grab to operate without being subject to regulations applied to other transport services.

The pilot was supposed to last for two years, but got extended for another two years in 2018. Starting from April this year, the pilot will no longer be in place. According to Nguoi Lao Dong, the status of ride-hailing cars will be now defined by a new decree issued in January of this year.

Under this new decree, ride-hailing vehicles that have under nine seats are now registered under either a taxi license or a contract-based transport services license. These cars are required to feature signs that indicate the type of license they’re operating under.

According to representatives from Grab and FastGo, the new decree is quite similar to the pilot program. The biggest difference in the new decree is that businesses will have to separate the company that offers the ride-hailing apps from the company that offers the transport services.

Hence, if a business is registered as a software and applications company, it can only provide the technology to the transport service company and won’t be allowed to set the fares for such service.

Under the new decree, drivers participating in ride-hailing services must complete the installation of signs and new registrations by July 1, 2021.