Vinasun is Vietnam’s dominant taxi operator
Two days ago, Vietnam’s leading taxi operator Vinasun initiated a lawsuit against ride-hailing giant Grab, accussing it of participating in predatory pricing and violating local laws in the country.
Vinasun claimed that these “illegal practices” have caused it to lose significant market share over the last two years.
Grab, in response, called accusations dubious and asked the courts to dismiss the case.
Today, Jerry Lim, Country Head of Grab Vietnam, has issued a formal statement regarding Vinasun’s lawsuit. He said that Vinasun is resorting to “anti-competitive tactics” and litigation as a reaction to its shrinking market share.
He added that Grab has always complied with local laws, and that since Vinasun also has an e-hailing app, both companies are competing on “equal grounds”.
Lim also said that because Vinasun has provided no evidence to support its accusations, the court is adjourning the case to next month.
Here is Lim’s statement in full:
“It is unfortunate that Vinasun has resorted to anti-competitive tactics and legal action as a reaction to their declining market share. From the proceedings yesterday, due to the lack of evidence, the court has adjourned the case till the next month.
Grab’s business is built on putting customers and passengers first and we have always urged our peers and competitors to do the same. We believe that competition is good for business and good for customers, and have kept our platform open for collaboration.
*All companies have the same capability to realise this competitive advantage if they were to constantly innovate, improve the quality of service and put customers first to stay relevant. This is the upward spiral effect that we hope to spur in the transportation industry.*
By more effectively connecting nearby taxis, bikes and cars to passengers through our tech platform, Grab has reduced the travelling time of Vietnamese commuters by 51% compared to using public transport, and increased the hourly income of Vietnamese driver-partners by 55% compared to national average hourly wages. Commuters chose Grab because we have improved their lives in significant ways through technology – from transparency in pricing, convenience, comfort to safety.
Grab’s operations in Vietnam have always been compliant with current rules and regulations. We have been granted an e-hailing pilot licence by the government to operate GrabCar service in 5 cities and provinces – Ho Chi Minh City, Hanoi, Khanh Hoa, Quang Ninh and Danang. Nine other companies also participated in the same pilot programme. *Vinasun is one of them and they have the VCAR app to compete on equal and fair grounds. All companies approved by the pilot licence were given equal opportunity to innovate to maximise the efficiency of public transportation with the best interests of consumers at heart.*
In addition, under Vietnam’s e-commerce legislation, we are also able to operate GrabTaxi and GrabBike services legally nationwide.”
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Image Credit: Grab
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