BackStories » Vietnam » Ministry of Transport Bans Uber and Grab Carpooling Services

Ministry of Transport Bans Uber and Grab Carpooling Services

Vietnam's Ministry of Transport has banned new carpooling services from Uber and Grab.

VnExpress reports that UberPOOL and GrabShare, which combine rides to reduce costs for customers, are now banned in the country. These services allow drivers to pick up multiple passengers.

The ministry blocked the services because they create risks for passengers, the news source shares, though officials did not provide any examples of what these risks may entail. Moreover, according to Bao Moi, Vietnam's current law on transportation service only allows companies to serve one contract per trip. Carpooling schemes are therefore a violation of this policy.

Uber and Grab will be fined VND4-6 million (US$175-260) per ride if they disobey the ban. Both companies introduced their carpooling services to Vietnam last month.

[Photo via Vir]

Related Articles:

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

Vietnam Ministry Rejects Uber's Transportation Pilot Scheme for 2nd Time

Grab Reports Over 60 Drivers Assaulted by Traditional Xe Oms