Vinasun resorted to ‘anti-competitive tactics’ and legal action as reaction to declining market share: Grab

Grab Vietnam’s country head Mr Jerry Lim said that Grab’s operations in the country have always been compliant with current rules and regulations.
Reuters

The country head of Grab Vietnam has issued a statement in response to a lawsuit initiated by Vietnamese taxi operator Vinsaun which accuses the popular ride-hailing service of “illegal operations” which caused its company revenues to fall in 2016 and 2017.

Mr Jerry Lim said in a statement issued on Thursday (Feb 8) that it is “unfortunate” that Vinasun has “resorted to anti-competitive tactics and legal action as a reaction to their declining market share.”

“Grab’s business is built on putting customers and passengers first and we have always urged our peers and competitors to do the same. We believe that competition is good for business and good for customers, and have kept our platform open for collaboration,” he added.

The matter which went before a Ho Chi Minh City court earlier this week heard that Vinasun is seeking VND42 billion ($1.85 million) in compensation for loss in profits over the two years which it said it suffered as a result of Grab’s operations.

Grab’s lawyers had claimed that Vinasun’s allegations are baseless and that its evidence and methods of calculations are questionable.

Vinasun had further alleged that Grab only has to follow three government regulations in Vietnam, while it has to observe 13 which it says, creates unfair competition.

Business Insider understands that the hearing has been adjourned until next month.

Mr Lim said: “Grab’s operations in Vietnam have always been compliant with current rules and regulations.”

The company was granted an e-hailing pilot licence in 2016 by the Vietnam government to operate GrabCar service in five cities and provinces – Ho Chi Minh City, Hanoi, Khanh Hoa, Quang Ninh and Danang.

Here is Mr Lim’s statement in full:

“It is unfortunate that Vinasun has resorted to anti-competitive tactics and legal action as a reaction to their declining market share. From the proceedings yesterday, due to the lack of evidence, the court has adjourned the case till the next month.
Grab’s business is built on putting customers and passengers first and we have always urged our peers and competitors to do the same. We believe that competition is good for business and good for customers, and have kept our platform open for collaboration.
All companies have the same capability to realise this competitive advantage if they were to constantly innovate, improve the quality of service and put customers first to stay relevant. This is the upward spiral effect that we hope to spur in the transportation industry.
By more effectively connecting nearby taxis, bikes and cars to passengers through our tech platform, Grab has reduced the travelling time of Vietnamese commuters by 51% compared to using public transport, and increased the hourly income of Vietnamese driver-partners by 55% compared to national average hourly wages. Commuters chose Grab because we have improved their lives in significant ways through technology – from transparency in pricing, convenience, comfort to safety. 
Grab’s operations in Vietnam have always been compliant with current rules and regulations. We have been granted an e-hailing pilot licence by the government to operate GrabCar service in 5 cities and provinces – Ho Chi Minh City, Hanoi, Khanh Hoa, Quang Ninh and Danang. Nine other companies also participated in the same pilot programme. Vinasun is one of them and they have the VCAR app to compete on equal and fair grounds. All companies approved by the pilot licence were given equal opportunity to innovate to maximise the efficiency of public transportation with the best interests of consumers at heart.
In addition, under Vietnam’s e-commerce legislation, we are also able to operate GrabTaxi and GrabBike services legally nationwide.”