New decree to better regulate ride-hailing firms

From the beginning of April, cars providing passenger transportation services via ride-hailing apps would be treated like taxis - Photo: nhipcaudautu.vn

Decree 10/2020/ND-CP will take effect from the beginning of April in the context that the Fourth Industrial Revolution (Industry 4.0) has hugely changed the transportation market, making old regulations outdated.

The ministry said the decree demonstrated the Government’s determination to use technology in automobile transportation management, simplify administrative procedures and remove inappropriate regulations.

The decree aims to create a fair playing ground for transportation service providers, increase convenience for passengers and ensure safety.

The most noteworthy point of the new decree is that it clearly distinguishes transportation service providers from ride-hailing platform operators.

An automobile transportation service provider can perform at least one of the stages of transportation services like directly operating vehicles, managing drivers or actively offering fees while ride-hailing platform operators could not intervene in any stage but only help connect drivers and passengers.

Tran Bao Ngoc, director of the Transportation Department under the Ministry of Transport, in an interview with Tuoi Tre (The Youth) online newspaper, said this would enable companies like Grab to select the most appropriate model for their operation, as transportation service providers or ride-hailing platform operators.

The decree coming into force would also signal the end of the pilot project of tech-based cars which allowed ride-hailing cars to operate in five provinces and cities including Hanoi, Ho Chi Minh City, Da Nang, Quang Ninh and Khanh Hoa.

Ngoc said that with the new decree, ride-hailing cars could operate in all 63 provinces and cities nationwide if they met legal requirements.

All cars providing passenger transportation services via ride-hailing applications will be treated like taxis from the beginning of April.

This means such cars must have a taxi sign on the roof or a sign made of reflective material on the front and rear window. The installation must be completed before July 1.

In addition, roof signs would no longer be compulsory for traditional taxis. Instead, they could also opt for a taxi sign made of reflective material on the front and rear window.

This aims to ensure fairness between ride-hailing cars and traditional taxis.

According to Nguyen Van Xang, chairman of Hanoi Union of Transport Technology Cooperatives, which manages more than 14,000 tech-based cars, said the new decree would create a legal framework for ride-hailing car firms which would benefit both drivers and passengers.

Xang said the market for tech-based cars would be expanded to 63 provinces and cities which would create opportunities for drivers.

The new decree, replacing the Decree 86 issued in 2014, also regulates all vehicles providing transportation services from nine seats or higher must install cameras before July 1 to record their journey. This regulation aims to improve transportation service quality and ensure traffic safety.