Uber Tuesday launched its uberX service that is at least 25 percent cheaper than other taxis in Hanoi and Ho Chi Minh City.
According to Uber, uberX services in Vietnam are provided by commercially licensed and insured driver partners who have government approval. Customers will get four-door compact cars like Hyundai i10 and Toyota Vios.
The fare per kilometer in Hanoi is VND5,000, while other taxis charge VND11,000-16,000.
In Ho Chi Minh City, it is VND8,500 compared to the VND15,000-17,000 fare on other taxis and VND11,500 on uberBlack, the existing service.
After nine months of operations in Vietnam, Uber only recently got the green light from the government after much debate about its legal status.
Prime Minister Nguyen Tan Dung approved a proposal from the Ministry of Transport forcing Uber Vietnam to sign contracts with licensed transport companies.