GrabTaxi has become the first business to be allowed to apply connection services to contract based passenger cars with fewer than nine seats in Vietnam (GrabCar).
Under the GrabCar pilot project, 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.
Some other businesses, including LiveTaxi, TaxiNavi, Ahamove and Vinasun have also developed their own cab-hailing apps.