Ride-sharing app Uber has been given the green light to run a pilot service programme in Vietnam, a movement which the tech company saw as “overcoming huge yet worthwhile challenge”.
Accordingly, the local transportation ministry has approved Uber’s involvement in the country’s so-called “IT application in contracted passenger transportation services” pilot scheme. Having been present in Vietnam for almost three years,
Uber’s proposal to participate in this programme was rejected twice in 2015 and February this year, even as Vietnam had given nod to its biggest competitor, Grab.
As per the local authorities as cited by local media, Uber had met their legal requirements for the transport innovation programme. The ministry had earlier requested Uber Vietnam to be a ride service provider, while the ride-hailing app had registered itself in the country as to provide “consulting, management, market research and public opinion polling services.”
Last month, both Uber and Grab encountered a ban in the central tourism city Danang as the local authorities reasoned that current forms of transport could already meet the city’s needs, and the trial use of Grab was unsuitable.
The transport ministry’s initiative covers five cities: Hanoi, Ho Chi Minh City, Danang, Khanh Hoa and Quang Ninh. Even as the ministry has enrolled Uber, the company will still need approval from the municipal governments for an operational license.