The company, named Vinasun, claims Grab is participating in unfair business practices

Vinasun, a taxi operator based in Vietnam, has filed a lawsuit against Grab, claiming that the ride-hailing app is participating in predatory pricing and violating local laws surrounding promotions.

According to the Straits Times, Vinasun is citing a legal edict from 2006 called Decree 37 which restricts businesses from exceeding 90 days of annual promotion days. Furthermore, promotions are not allowed to last longer than 40 days annually.

Vinasun, which used to dominate the Vietnamese taxi industry, is claiming these “illegal practices” has directly related to its shrinking market share over the last couple of years.

According to the article, Truong Dinh Quy, deputy director-general of Vinasun, also said Grab has significantly less regulations (three versus 13) that makes it difficult to compete.

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For its part, Grab has fired back by claiming Vinasun’s loss calculations are dubious and that, because it is a software platform, it has levelled the playing field in the Vietnamese taxi industry.

They are asking the court to dismiss the case.

Currently, the legal structure surrounding ride-hailing in Vietnam is being developed, and it is likely the industry will see have more clarity in the future.

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Grab entered Vietnam in 2014.

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