Driver hurt in Grab, Uber taxi price war

Grab and Uber continue to offer huge discounts to passengers to grab market share from traditional taxis.
They are 25-50 per cent cheaper than traditional taxis, and passengers are informed before the ride how much it will cost them.
“Grab and Uber have changed the public transport market,” Le Trong Thanh, a traditional taxi driver, said.
“Traditional taxis have to follow many regulations and pay lots of fees, but not Grab and Uber.”
Dao Van Long, another traditional taxi driver, said, “With their current prices, Grab and Uber put up with losses to eliminate traditional taxis.”
Under intense price pressure from Grab and Uber, many traditional taxi companies have also changed their policies. Like Uber and Grab, traditional taxi companies now rent out their taxis instead of signing labour contracts with their drivers. The drivers thus lose their benefits like social and health insurance.
Vinasun, one of the biggest taxi companies, has recently signed contracts renting its cars to drivers.
“I’ve just re-signed a contract with Vinasun,” Nguyen Hung Tuan said, worried.
“From now on every day I have to pay 800,000 dongs (US$35) to the company.”
He revealed that if drivers rent the cars before May they would get 100,000 dongs ($4.5) per day in support from company.
“Vinasun’s turnover has reduced by 30 per cent because Grab and Uber undercut its prices,” Ta Long Hy, director of Vinasun, told Tuoi Tre (Youth) newspaper.
He revealed that his drivers’ incomes have also fallen by 30 per cent and now they only earn 5 – 6 million dongs ($220-250) a month.
“Twenty per cent of our drivers have quit.”
Another major taxi company, Mai Linh, encourages drivers to buy a new car and run it under the company’s colours.
“All these have put pressure on drivers, and customers are benefiting,” Nguyen Thanh Hung, a traditional taxi driver, said.
“Taxi drivers will not be able to buy accident insurance.”
With the financial pressure of renting their taxi, drivers have less time to rest and this could cause more accidents, he said.
The number of cars signing up with Grab and Uber has increased sharply, causing a severe loss of income for drivers.
When Grab and Uber first came, many people borrowed money from banks to buy cars and sign up with them. In the beginning they could earn 20-30 million dongs a month ($900-1,200), but incomes have since gone down sharply.
But Tan Cao quit his job at a construction company a year ago, borrowed 300 million dongs ($13,300) from a bank, and signed up with Uber.
A year later his income has fallen 30 per cent to around 800,000 dongs ($35) a day because there are too many Grab and Uber cars.
Nguyen Phuong, owner of a transportation company in District 2, is worrying about his 12 cars which used to run for the two ride hailing companies.
Last year he sold his two trucks, borrowed some money from a bank and also persuaded some friends, which added up to 12 cars. In the first few months he could earn 30-40 million dongs ($1,200-1,800) a month, but since then his income has fallen and 40 per cent of the drivers have quit.