Jakarta Globe, Bloomberg, Dec 02, 2014
Uber Technologies, the online car-booking company that competes with traditional cab services, faces a roadblock in Vietnam after the government said its taxi service is illegal.
The Uber App is shown in this Feb. 14, 2013, file photo in Washington, DC. (AFP Photo/Paul J. Richards) |
Uber Technologies, the online car-booking company that competes with traditional cab services, faces a roadblock in Vietnam after the government said its taxi service is illegal.
The mobile
application-based service has no legitimacy to operate as a cab provider, the
Vietnamese government said on its website, citing the country’s Deputy
Transport Minister Nguyen Hong Truong. The government’s decision came after the
Ho Chi Minh City Taxi Business Association complained about Uber’s cab operations.
It isn’t clear by when Uber, which officially started operating there on July
31, has to cease operations.
Evelyn Tay,
Uber’s head of communications for the Asia-Pacific region in Singapore, didn’t
immediately reply to an e-mail seeking comment. The Vietnam Transport Ministry
also didn’t immediately reply to faxed questions.
The setback
in Vietnam is the latest for the San Francisco-based company in Southeast Asia
after Thailand said it will fine drivers using private cars to provide
commercial services and warned users against the app. That could dent Uber’s
global expansion plans that underpin a valuation of the company of as much as
$40 billion, making it worth more than Twitter or Hertz Global Holdings.
Uber, which
has started operations in more than 200 cities since its founding in 2009,
faces legal battles in countries including Germany amid complaints about unfair
competition and lack of customer safety.
The city of
Oslo reported the company to the police for lacking permits to operate there,
and Toronto has also asked a court to shut down Uber.
Bloomberg
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