Malaysia’s GrabTaxi started applying connection services to contract based passenger cars with fewer than nine seats in Vietnam this month under a pilot project approved by the government.
Under the project, called GrabCar, GrabTaxi will “regularly report the list of transportation entities and vehicles” that use its ride-hailing app to help the authorities “manage tax payment and other regulatory responsibilities,” according to a press release.
The two-year pilot project requires participating cars to be equipped with route monitoring devices and have ‘contract-car’ badges.
It will be carried out in Hanoi, Ho Chi Minh City, Da Nang, Quang Ninh and Khanh Hoa.
The project will produce lower fares for consumers, as well as encourage “healthy competition” among passenger transportation businesses in Vietnam, the release said.