On April 7, Uber launched uberX, a new service that will be at least 25% cheaper than traditional taxi services in Saigon and Hanoi.
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Not only will the service be less expensive, but the company is also now working within the framework of government transport policies, an issue that’s been a sticking point for Uber since it launched in Vietnam last year. After months of legal wrangling, the Ministry of Transport recently announced that it would allow the company to operate in Vietnam as long as it signs contracts with licensed transport companies.
UberX will rely on economy cars such as the Hyundai i10 and Toyota Vios to undercut existing pricing schemes:
“The fare per kilometer in Hanoi is VND5,000, while other taxis charge VND11,000-16,000. In Ho Chi Minh City, it is VND8,500 compared to the VND15,000-17,000 fare on other taxis and VND11,500 on uberBlack, the existing service,” according to Thanh Nien.
It will be interesting to see if being the cheapest ride in town will allow Uber to change the conversation about taxis in Vietnam’s cities.
