Uber Ridesharing Pilot Program gets green light

Permission marks a milestone for ride-sharing app in Vietnam and reflects government's forward thinking.

The Ministry of Transport (MoT) has given approval to Uber to conduct a Ridesharing Pilot Program in Vietnam.

This is a significant milestone for Uber in Vietnam and reflects the progressive stance of the government in embracing new technologies and new business models during the Industrial Revolution 4.0 and its recognition of the positive contribution ridesharing can bring to its economy and society.

Mr. Dang Viet Dung, General Manager of Uber Vietnam, said that securing MoT approval marks an important step forward for the company and will encourage it to continue renovating technologies and provide convenience and benefits to users and drivers in major cities around the country.

MoT previously declined to approve Uber Vietnam’s request to pilot an IT upgrade for its services. It has rejected the company’s pilot project on two previous occasions: in November 2015 as the company had not founded an appropriate legal entity in Vietnam, and earlier this year because the project was not in compliance with established laws.

Vietnam has a fast-growing economy and a young population. Since the Uber app was launched, the level of technology and innovation adoption has been remarkable, according to Mr. Dung.

“Vietnamese have always been forward-thinking, inclusive, and quick to embrace new ideas and innovative technology,” he went on. “We’re very pleased to see how the app has influenced drivers and passengers in Vietnam.” 

At the CEO Forum entitled “Industrial Revolution 4.0 - Gain & Lose” hosted by Vietnam Economic Times on April 7, Mr. Dung said that the substance of the fourth industrial revolution is the convergence of econophysics, digital economics, and biologics, based on the foundation of artificial intelligence. This will certainly alter the industrial sector in the future, he added.

Uber’s growing presence in over 450 cities in 70 countries ensures overseas visitors have a familiar and safe way to explore Vietnam and visit a broader and more diverse range of neighborhoods.

Uber has connected Ho Chi Minh City with international passengers from 66 countries and Hanoi with passengers with 62 countries. An Uber user in the US, for example, can book an Uber ride in Vietnam for a friend and the two can see the trip updated via smartphone.

It entered Vietnam in July 2014. Late last year Vietnam became the first country in Southeast Asia to launch cash payments and since then a significant proportion of fares have been paid for by cash. uberMOTO was also launched earlier this year, providing motorbike taxis with lower fares.

by Quynh Tuyet / VET