JavaScript is off. Please enable to view full site.

Grab ordered to pay compensation to Vietnamese taxi firm

Friday, December 28, 2018, 15:45 GMT+7
Grab ordered to pay compensation to Vietnamese taxi firm
A Grab taxi drives on a street in Hanoi, Vietnam October 29, 2018. Photo: Reuters

HANOI -- A Vietnamese court on Friday ordered ride-hailing firm Grab to pay 4.8 billion dong ($206,985) in compensation to a local taxi operator, ending an 18-month-long legal battle between the two firms, a Grab spokesman and state media reports said.

The case is a rare instance of a taxi firm suing a ride-hailing rival over profit losses. Vietnam Sun Corp, better known as Vinasun, was awarded just over 11 percent of the 41.2 billion dong in compensation it was seeking over what it said were Grab’s unfair business practices.

A Grab spokesman confirmed to Reuters that the company had been ordered by the court to pay the compensation, but declined to give further details.

Vinasun did not respond to requests for comment.

The verdict found Grab violated Vietnamese regulations because it operates as a taxi company, and not just as a technology firm, the Tuoi Tre newspaper reported.

The judge presiding over the case also said there was a link between the operations of Grab and Vinasun’s losses in revenue, but said Grab was not the only factor behind that decrease, the report said.

Grab said in a statement earlier this week that Vinasun needed to “evolve and transform” its business and should not “reduce the contestability of the market and pursue a lawsuit that seeks to discourage the entry of innovative companies”.

“It is unreasonable for this court case to drag indefinitely just to allow Vinasun to build its case - when there’s none at all,” Grab said in the statement.

Reuters

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news

Chilean Air Force finds debris believed to be from missing plane

The aircraft, which was heading to a base in Antarctica, disappeared shortly after taking off late on Monday from the southern city of Punta Arenas in Chilean Patagonia. The Air Force concluded early the next morning that the aircraft must have crashed, given the number of hours it had been missing