Getting around Vietnam’s big metropolises will be more expensive in the future as Uber has increased its fares.
In a recent interview, a representative from Uber confirmed to Tuoi Tre that from August 24 the ride-hailing company will raise its base fare from VND7,000 to VND8,500 per kilometer in Saigon. The per-minute fee remains the same at VND450, as do the minimum fare and cancelling penalty, both at VND15,000.
In Hanoi, the hike is even steeper for customers: the minimum fare will be raised to VND15,000 from VND5,000, while the per-kilometer price will go from VND5,000 to VND7,500. Uber’s current commission rate for drivers is 25% of each trip’s cost.
Uber’s announcement came on the heels of Grab’s hike on its commission rate last week from 15% to 20% of each driver's income.
Despite their popularity among Saigon and Hanoi’s users, the journey of ride-hailing apps in the country hasn’t been smooth sailing due to numerous hiccups with local authorities.
Uber’s latest clash with the government was in Da Nang earlier this month when the company launched a trial program of its service from August 1 to 8. However, the city’s Department of Transportation said that it did not agree to the trial service and shut it down, reports Tuoi Tre.
According to Bui Thanh Thuan, the department’s deputy director, the organization requested that Uber Vietnam cease all promotional and trial activities in Da Nang until the central government comes up with necessary documents stipulating regulations for ride-hailing services.
Last month, the Ministry of Transport also issued a ban on both Uber and Grab’s carpooling services, citing safety issues. However, the blanket ban seems incongruous, especially after the Hanoi Department of Transport reported that vehicles participating in ride-hailing activities are clogging up local streets, making congestion worse.
