Grab Vietnam Posts $20 Million Loss in 2016 on Aggressive Promos

Tuan Minh

10:06 30/06/2017

BizLIVE - With big promos, ride-hailing services Grab and Uber have changed Vietnamese people's transport culture.

Grab Vietnam Posts $20 Million Loss in 2016 on Aggressive Promos

A GrabBike driver is localizing his client. Photo: kenh14.vn

Malaysia-based Grab, one of the two popular ride-hailing services in Vietnam, had a loss of 443 billion dong (nearly $20 million) while its revenue came at 192 billion dong ($8.4 million) last year, VnExpress cited the Hanoi Taxi Association as saying.
The ride-hailing service, which has rapidly gained popularity among tech-savvy users, paid 5.8 billion dong in value-added and registration taxes in 2016, around one thirtieth that of the leading traditional taxi operator Vinasun.
Grab Vietnam did not pay a cent in neither personal nor corporate income taxes, according to Vietnamese taxation legislation.
Huge promotions for both drivers and clients are attributable to the loss of Grab, which has been present in Vietnam since February 2014 and has a registered capital of nearly $1 million, according to the taxi association.
Vinasun has logged complaints to the Ministry of Transport saying that promotions and incentives offered by Grab and the Netherlands-based Uber have caused big losses and layoffs to traditional taxi operators.
With competitive edges of convenience, transparency and low cost, GrabBike and UberMoto have transformed Vietnam’s transport culture and elbowed aside the tradition bike taxis, known as xe om, who usually overcharge clients.  
Nguyen Tuan Anh, chairman of Grab Vietnam, told Associated Press that the number of GrabBike drivers has jumped from 100 when they first launched in 2014 to more than 50,000.
Anh said that many Vietnamese now prefer to use ride hailing apps, viewing their services as safer and cheaper. “GrabBike brings transparency and that's why customers love it. They know that they will not be cheated by the drivers.”

TUAN MINH

Từ khóa: hanoi, Grab, Uber, Vinasun

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