Earlier, on Monday, Vietnamese authorities had said they would further investigate the deal done last year for possible violation of antitrust regulations after suggesting in December it was in breach of the Competition Law. "Grab proceeded with the transaction in the good faith belief that there is no breach of competition laws after diligent consultation with legal counsels," Jerry Lim, country head of Grab Vietnam, told VnExpress International. He said the key point of contention could lie in the difference in the authorities' and Grab’s definitions of "relevant market" and what constitutes a competitive playing field. "The competition in the ride-hailing market in Vietnam has been increasing with the participation of both local and international companies. New apps are launched to further advance the potential of this market in the country." Grab has fully cooperated with the authorities for the purpose of a fair investigation, he said. "In the meetings with Vietnamese … [Read more...] about Grab says Uber deal did not infringe Vietnam laws
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The assertion was a response to the Ministry of Industry and Trade, which said Wednesday that it had evidence that Grab’s acquisition of Uber violated Vietnam’s Competition Law . In a statement released Thursday, Jerry Lim, country head of Grab Vietnam, said that the transaction between Grab and Uber earlier this year was conducted "in the good faith belief that there is no breach of competition laws, after diligent consultation with legal counsels." Lim explained that the issue has become contentious because of differences in the authorities’ and Grab’s definitions of relevant market and what constitutes a competitive playing field. He said that the entrance of new ride-hailing companies into Vietnam shows that they believe there is a chance to succeed, with some of them claiming high market shares. In June, Vietnam’s first ride-hailing services FastGo and Aber were launched. Go-Viet, an affiliate of Indonesia's Go-Jek, entered Vietnam in August, … [Read more...] about Grab says Uber deal ‘no breach of competition laws’
The investigation, carried out by the ministry’s competition and consumer protection department, found that the two ride-hailing firms had failed to report their merger to competition authorities as needed. They merger they carried out was also not allowed by Vietnamese law, the ministry said Wednesday. The 2004 Competition Law requires any merger or acquisition that results in a company gaining a 30 percent market share to be reported to competition authorities. If a company gains a 50 percent market share from the deal, it can only be implemented with express permission from the authorities. The department’s preliminary investigation has found Grab’s market share in Vietnam exceeded 50 percent since Uber quit the market last April. But Grab claimed that since its combined market share with Uber in Vietnam was less than 30 percent, it did not have to "inform the competition authority before proceeding and completing this transaction in the country." The merits of the … [Read more...] about Grab’s Uber takeover violated Vietnam’s competition law
Grab has written to Prime Minister Nguyen Xuan Phuc expressing concern over the latest draft of a decree prepared by the Ministry of Transport under which transport firms offering services with under 9-seater cars should be registered as taxi firms before they can apply ride-hailing technologies. This means that Grab and other ride-hailing firms would have to register their services again as taxi businesses and comply with corresponding legal responsibilities regarding their operating licenses, drivers’ profiles and tax duties. "The regulation not only goes against the policy and guidelines of the Government on the application of science and technology, and on reform of administrative procedures, but also completely denies the clear benefits achieved by the pilot scheme for ride-hailing services,” the company said. It said that the pilot scheme has sped up development of the transportation market, helped state agencies find effective management solutions using technology, … [Read more...] about Grab: becoming a taxi company a step back from Industry 4.0
Singapore's competition watchdog has suggested that the recent merger between ride-hailing companies Grab and Uber could be undone after investigations revealed that the deal has infringed the Competition Act. Could Grab and Uber be forced to unwind their merger? Unlikely, experts say, Photo source : AFP The Competition and Consumer Commission of Singapore (CCCS) said the deal led to a "substantial lessening of competition" in ride-hailing platforms, made it harder for new competitors to enter the market, and resulted in higher prices. It will also be seeking public feedback on proposed remedies to address competition concerns, and has recommended imposing financial penalties on the parties. It also floated the possibility that the merger could be undone unless the proposed measures do enough to address competition concerns. However, experts Channel NewsAsia spoke to said that it was not realistic for the deal to be unwound given Uber's exit from the Singapore market and the … [Read more...] about Could Grab and Uber be forced to unwind their merger? Unlikely, experts say
Grab’s acquisition of Uber opens the door for Vietnamese businesses to enter the ride-sharing market, said Khuat Viet Hung, vice chairman of the Vietnam National Safety Traffic Committee. Grab’s acquisition of Uber opens the door for Vietnamese businesses to enter the ride-sharing market, said Khuat Viet Hung, vice chairman of the Vietnam National Safety Traffic Committee.- Photo vov.vn Speaking at a seminar titled “Grab’s acquisition of Uber: What are the opportunities for Vietnamese companies?” held in Hanoi on Friday, Hung noted that Uber was unknown seven and eight years ago, and that when Uber entered Vietnam, no one had heard of Grab. “When there appears a ‘giant’ in the market, we often feel anxious, but I think that Grab buying Uber is really an opportunity for Vietnamese businesses,” he said. Grab has officially announced that it has completed the acquisition of Uber’s business in Southeast Asia. After the … [Read more...] about With Grab buying Uber, can Vietnamese firms compete?
Grab’s acquisition of Uber opens the door for Vietnamese businesses to enter the ride-sharing market, said Khuat Viet Hung, vice chairman of the Viet Nam National Safety Traffic Committee. Grab’s acquisition of Uber opens the door for Vietnamese businesses to enter the ride-sharing market, said Khuat Viet Hung, vice chairman of the Viet Nam National Safety Traffic Committee.- Photo vov.vn Speaking at a seminar titled “Grab’s acquisition of Uber: What are the opportunities for Vietnamese companies?” held in Ha Noi on Friday, Hung noted that Uber was unknown seven and eight years ago, and that when Uber entered Viet Nam, no one had heard of Grab. “When there appears a ‘giant’ in the market, we often feel anxious, but I think that Grab buying Uber is really an opportunity for Vietnamese businesses,” he said. Grab has officially announced that it has completed the acquisition of Uber’s business in Southeast Asia. After … [Read more...] about With Grab buying Uber, can VN firms compete?
Customers and drivers are both worried that ride-hailing firm Grab's acquisition of rival Uber’s Southeast Asian business will reduce competition, resulting in higher fares and fewer incentives. The services in Vietnam have long relied on discounts for customers and incentives for drivers. Reuters quoted Grab as saying that the Uber acquisition accelerated its path to profitability in its core transport business, as it would become the most cost-efficient Southeast Asian platform. However, it is bad news for both customers and drivers in Vietnam, where there are a few public transport options, and the apps have grown in popularity. Trinh Bao Tram uses either Grab or Uber for her daily commute in Hanoi, and the discount codes available on any given day ultimately decide which service she uses, but now the 38-year-old newspaper editor is concerned about a price hike. “I use whichever firm gives me discount codes, if not, I’ll skip it. After the merger, I'll have no … [Read more...] about Grab’s deal to buy Uber sparks fear of price hike in Vietnam
Ride-hailing company Grab expressed frustration at Vietnam’s announcement to impose bigger control over its operations on Friday, another development in the prolonged tension between Grab and traditional transport firms in the country. Nguyen Van The, Minister of Transport, said on Thursday that companies like Grab or Uber must be treated as transport companies instead of tech companies. The move demands that the authorites manage the companies as traditional taxi companies, regarding operating licenses, drivers’ profile and tax duties. But Grab said that kind of control can stymie Vietnam’s technological progress and cause a major setback to the government’s efforts to make Vietnamese businesses competitive as the world is on the brink of a new industrial revolution. “Defining Grab as a taxi company would be a denial to the Vietnamese government’s and our own efforts to push Vietnam’s technological prowess. It would also hinder … [Read more...] about Grab dismisses Vietnam’s plan to treat it like a taxi company as ‘major setback’
The Department of Transport in Hanoi has officially made a proposal to the municipal People’s Committee, forbidding contract-based vehicles with less than nine seats from traveling on a number of urban streets. Defined as a means of transport operated on an agreement, in the written form or via a smartphone app, between a licensed passenger transit business and a customer, contract-based vehicles include Uber and Grab cars. Such vehicles will be prohibited on 11 streets within certain time frames. During rush hours, from 6:00 am to 9:00 am and between 4:30 pm and 7:00 pm, their two way movement is not allowed on the streets of Giang Vo, Lang Ha, Le Van Luong, and Truong Chinh. Uber and Grab cars and taxis are also banned the entire day on Phu Doan Street (one direction), Cau Giay Street and Xuan Thuy Street (two directions). They are prohibited from running on Hang Bai Street between 7:00 pm and midnight on Friday and the weekend. The proposal is awaiting consent from the … [Read more...] about Hanoi bans contract-based vehicles, including Grab and Uber, on multiple streets