Chinese car-hailing app to rival Grab, Uber in Vietnam

Bach Duong

17:08 08/08/2016

Passengers in Vietnam are expected to benefit from the new competition.

Chinese car-hailing app to rival Grab, Uber in Vietnam

A taxi driver is reflected in a side mirror as he uses the Didi Chuxing car-hailing application in Beijing, China, September 22, 2015. Photo by Reuters/Jason Lee

Didi Chuxing Technology, a homegrown car-hailing app from China, is expected to expand to Vietnam soon after receiving more than $7 billion in its latest fundraising round, a source told VnExpress on Saturday.
Didi Chuxing Technology Vietnam JSC, which was only established a month ago, is in the process of seeking approval for a car-hailing app similar to Uber and Grab in the Southeast Asian nation.
The app is expected to start a pilot program in September once local authorities give the nod, the source said.
Car owners will not be charged any registration fee when they sign up with Didi Chuxing Technology Vietnam JSC. Similar to Grab and Uber, there will be no metering, radios or company name on Didi’s cars, and no set hours for drivers, a senior official from the company said, adding that the company will also connect with customers through Zalo, Wechat and Facebook.
Didi said in June it raised $7.3 billion in its latest round of funding, including $1 billion from Apple, as it battles to fend off Uber's march into China, Reuters reported.
After a bruising two-year battle, ride-hailing firm Uber is giving up its China operations to bigger local rival Didi Chuxing in an exchange that will give Uber a one-fifth stake in Didi, Reuters reported on August 1.
The merged entity is worth around $35 billion - combining Didi's most recent $28 billion valuation and Uber China's $7 billion, Reuters quoted a source familiar with the matter who did not want to be named before the deal was made public.
Car-booking apps-Grab and Uber have been operational in Vietnam since 2014 and are both increasingly favored by local passengers, providing fierce competitors for Vietnam’s traditional taxis.
While Grab was licensed by Vietnam’s Ministry of Transport in March this year, Uber is still not legally recognized due to several unsettled issues, including taxes.
Source: VnExpress