Saturday,  Mar 28, 2020,16:15 (GMT+7) 0 0
Superior court upholds decision on Grab’s compensation for Vinasun
The Saigon Times Daily
Wednesday,  Mar 11, 2020,13:29 (GMT+7)

Superior court upholds decision on Grab’s compensation for Vinasun

The Saigon Times Daily

Grab cars are seen in this file photo. Grab will have to compensate Vinasun - PHOTO: VNA

HCMC - The HCMC Superior People's Court has upheld a lower court decision that forces ride-hailing firm Grab Vietnam to pay VND4.8 billion in compensation to HCMC-based taxi operator Vinasun.

According to the HCMC Superior People's Court, Grab’s contributions to local consumers and the domestic transport market are undeniable. It has helped develop the sharing economy model in the country, create jobs for local laborers and offer consumers more choices, the local media reported.

However, it has also caused problems for other transport firms as well as the economy.

Specifically, Grab is not subject to tax rates like other transport firms and does not have to declare its service prices or pay social and health insurance premiums for laborers.

Vinasun’s losses were caused by many factors but were mainly attributable to Grab’s violations.

Therefore, the decision that Grab has to pay VND4.8 billion in compensation to Vinasun is reasonable, the court declared.

The ruling of the first-instance court will help create a fair and transparent business environment.

Vinasun filed a lawsuit against Grab in 2017, accusing it of violating the Laws on Commerce and E-transactions and of adopting unfair business practices, causing losses for traditional taxi operators, including Vinasun.

As a result, Vinasun demanded that Grab make a lump-sum payment in compensation for its combined business losses of roughly VND41.2 billion in 2016 and the first half of 2017.

On December 28 last year, the HCMC People’s Court ordered Grab Vietnam to pay VND4.8 billion in compensation to Vinasun, as the court had found that Grab had run afoul of Vietnam’s transport business regulations because it operates as a taxi business and is not just a tech software provider.

Grab later filed an appeal against the ruling of the court, stating that the court had no jurisdiction over the case, so it requested the court to reverse the first-instance judgment and dismiss the case.

The ride-hailing firm also proposed the court reject Vinasun’s lawsuit against Grab as Vinasun was unable to prove the causal relationship between its damages and the violations that it has accused Grab of committing.

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