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Uber and Grab Are Making Hanoi and Saigon's Congestion Worse: Officials

Authorities in Vietnam’s most populous metropolises are now considering limiting operations of ride-hailing apps such as Uber and Grab, accusing them of worsening traffic. 

During a recent conference held by the Ministry of Transport on combining technology and transportation, officials from Hanoi and Saigon brought up the role of Uber and Grab in the cities’ traffic problems, reports Dan Tri. Specifically, the companies were blamed for clogging up local streets and avoiding taxes.

The Hanoi Department of Transport shared that currently 4,000 vehicles in the capital are involved in the ride-hailing business. "The growth rate is too fast. We can't manage the logo, number of vehicles or whether they have e-contracts with other vehicle owners," a department representative shared.

Department officials also questioned the quality of drivers and the scope of Uber and Grab’s liability should something happen to passengers. They also said that due to the fast-growing number of vehicles registered with the companies, Hanoi streets are more crowded, leading to severe traffic jams.

Therefore, the department suggested that the city should stop issuing e-contracts to future drivers for the ride-hailing services in 2017.

Their colleagues from Saigon also echoed the sentiment. "In late 2015, HCM City had 200 to 300 cars with long-distance contracts but as of early April, the number is 22,000. We want to stop issuing licenses to cars with less than nine seats, as part of a better management plan," said Nguyen Ngoc Giao from the Ho Chi Minh City Department of Transport.

Vice Minister of Transport Nguyen Hong Truong, however, was more skeptical about the effectiveness of banning vehicles from operation. He didn’t support imposing “unreasonable bans” as both transport firms have become popular with the public.

[Photo via Vulcan Post]

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