Taxi - Don't let technology increase fares
- 103
- Business
- 21:54 17/08/2022
DNHN - The domestic taxi market is witnessing a major crisis. Technological taxis, after a period of storming, now also show many limitations. The market record shows that technology car companies often have higher fares than traditional taxis. So what is the solution to save the taxi businesses today?
According to the Hanoi Transport Association, for technology vehicles, Grab alone has sometimes reached 100,000 vehicles. Hanoi at its peak had up to 60,000 technology taxis. However, currently, the number of Grab and Bee's partner cars is about 16,000 and traditional taxis are about 10,000.
After 2 years of the COVID-19 pandemic, there were about 40,000 cars in Hanoi belonging to individuals and organizations that borrowed from banks for investment and were forced to sell cars to cut losses. Mr Nguyen Cong Hung, Chairman of the Hanoi Taxi Association (HNXHN) said: "According to the statistics of the Hanoi Transport Association (HHVTHN), the number is even more tragic, only about 9,000 vehicles."
Many challenges were thrown at the driver.
Even while the price of fuel has reduced, it only accounts for a portion of the price; many other products are still rising, making investments in vehicles and taxis no longer guaranteed to "break even." 80% of Hanoi's drivers come from the provinces, and many have been compelled to leave and return to their homeland, resulting in a lack of driving.
The HHVTHN official stated: "For example, at airports, like Noi Bai Airport, the number of travellers in and out is extremely great, but today there are many personal vehicles, more and more automobiles outside, Noi Bai Taxi Cooperative had 300 cars but now only 30 cars remain."
Mr Duong Manh H, 45, is a licensed driver in Hanoi's inner city who has been a taxi driver for over 15 years and has worked for a variety of cab firms, both conventional and technology. Mr H. still runs a taxi but does not own a business and does not work in "technology." Someone hired his automobile, which he parked near a hospital every day. He was forced to become an "umbrella" car because, in recent years, partly due to the epidemic of lack of customers, and then the price of fuel increased... and a point that he thought was as difficult as the problems mentioned above were the problems of the amount payable to the "brand" is too much.
These are the so-called management fees in traditional cab firms, and money talks... If you operate a technology vehicle, you must still pay fees to the owner business or cooperative..., as you must still join the cooperative that has previously signed a contract with a car technology firm. Earning 1 dong of sales, roughly one-third of which are technology businesses that earn extra overnight fees and platform fees... Of course, riders pay for everything. However, the greater the price, the fewer clients there are. In fact, instead of employing technological taxis, many clients have switched to traditional taxis.
Fares for technology taxis are higher than for regular taxis.
Technology taxis used to make waves, providing new values for taxi operations, but in fact, the fares of technology taxi businesses are greater than those of regular taxis.
"Until June 2022, at the peak, gasoline climbed to VND 34,000 per litre, a rise of roughly 61% compared to 2019," said Mr Nguyen Cong Hung, Chairman of the Hanoi Cooperative Society. While traditional taxis make it tough to change the fare, businesses such as Grab make it relatively simple. According to Mr Hung, when the price of gasoline rises, so will the fee.
Grab also charges a hot weather tax, which the Hanoi Social Union considers to be unlawful. Because, in general, the freight rates have been increased within the modified threshold of 5,000 - 10,000 VND/km, all labour, administrative, and asset depreciation expenses are included in the price rise, and no further fees are permitted. This result of the post-inspection pilot work allows them to unilaterally "raise pricing" (the hot weather fee is 5,000 VND and the foundation maintenance fee is 2,000). State management authorities must make this clear."
EMDDI of EMDDI Joint Stock Company is one of the software that has been implemented under the investment of Vietnamese firms and has not been particularly effective. EMDDI is designed for around 15 participating taxi units, from which taxi clients can request automobiles using the EMDDI app.
However, if these 15 units use the same Emdi app, the app's pricing may conflict with the fee of the taxi firms that are loaded on the meter, which may be cheaper or higher. Essentially, it just fulfils the demands of hiring a car, similar to the apps of Mai Linh, G7, Van Xuan, and others; every business has an app. Of course, the fare when booked through the Emdi system is more than that of a typical cab, as the Hanoi Cooperative Society spokesperson pointed out.

Not only that, but a lot of traditional taxi companies have also made their tech systems so that customers can talk to drivers. But none of the systems has lived up to what was hoped for. The reason is that taxi services are only available in a certain area. When people move, sometimes to a different province and sometimes to the same one, they have to use multiple systems and apps at the same time if they want to call a car. This is very annoying and makes people not care, plus they can't use all their apps to compare prices and find the best deals.
Freight charges are a problem that needs to be solved before the technology can be used.
According to Mr Do Khac Ha, who is the director of Viladata Company, a business that develops technology for the transportation industry, he said: "The company has been working on and now has a taxi and air freight connection system. This system can solve problems that already exist and handle the use of technology without making freight rates go up."
The company's solution is Tadi API. Tadi offers an API that GPS companies can use to integrate data about a vehicle's coordinates, temperature, speed, and whether or not it is on. Tadi doesn't change prices, and all taxi companies and cars can use it as much as they want. Bidding is the key to how this system works. Passengers will post their travel plans in the form of a "contract," and taxi drivers who can provide the service will act as "contractors."
With this form, riders can choose a car, a driver, a price, and check the reputation of each driver, among other things. The system also lets the driver set a basic price or a price for each trip. The cost of each trip is set by the driver and the person riding with them. The best way to save money is to avoid driving back without customers. This will make driving about 40% more efficient.

Tadi simply provides technological solutions in the form of exchange; drivers may register to utilize it regardless of whether they are in any business; they can even be business persons. Passengers simply need to use one app to access all drivers from all taxi firms, select a car, select a fare, select the best driver, and depart.
"Application of technology is unavoidable; firms that do not innovate would undoubtedly not be able to thrive. However, if the application of technology raises fares or puts pressure on drivers to make it more difficult, it is apparent that such technology must be created" Mr Do Khac Ha stated.
Hanh Nguyen
Related news
- Foreign investors expected to open 150,000 new securities accounts in the next 5 years
- Government’s plan to implement Law on Digital Technology Industry approved
- Vietnam launches “Private Economy Panorama Model” to foster public-private national development
- Shark Nguyễn Hòa Bình: Hanoi will become the capital of startup innovation.
- Deputy Prime Minister Lê Thành Long meets with Osaka Governor Yoshimura Hirofumi to promote Vietnam–Japan cooperation.
- The master sales secrets of luxury king Bernard Arnault that make the world spend
- White House: When politics and technology join forces to rewrite the global AI order
- Da Nang proposes semiconductor cooperation with Oregon (USA)
- Quang Tri calls for investment in wind power plant project worth over VND 1,100 billion
- Hanoi receives two million visitors during the four-day National Day holidays
- Multiple MoUs signed in Da Nang to boost semiconductor development
- UNDP Resident Representative hails Vietnam as an emerging economic powerhouse
- How the UAE Transformed from Oil Wealth to AI Leadership?
- Success in business is always a human story
- Mr. Le Viet Thang, CEO of 1Office: "Don’t use old solutions for new ai challenges"
- VinFast: a strategic pivot amid the green industry storm?
- 127 high-value projects post-merger: Ho Chi Minh City rolls out the red carpet for strategic investors
- Pakistani Ambassador to Vietnam: “Peace and unity are the strength to build the future.”
- Vietnam's Semiconductor Leap: Five Strategic Policies to Reach 2027 Goal
- What’s Vietnam’s game plan as President Trump pressures the Fed?
Đọc thêm Business
Foreign investors expected to open 150,000 new securities accounts in the next 5 years
The Ministry of Finance has set an ambitious target to increase the number of securities trading accounts held by foreign investors in Vietnam to 200,000 by 2030—four times higher than the current figure.
Vietnam launches “Private Economy Panorama Model” to foster public-private national development
Billionaire Nguyen Thi Phuong Thao emphasizes that entrepreneurs’ responsibilities extend beyond profits to creating social value.
Deputy Prime Minister Lê Thành Long meets with Osaka Governor Yoshimura Hirofumi to promote Vietnam–Japan cooperation.
As part of his working visit to Japan and participation in the Vietnam National Day at EXPO 2025 Osaka, on September 8, Deputy Prime Minister Lê Thành Long held talks with Osaka Governor Yoshimura Hirofumi.
Larry Ellison’s lesson: Enduring success starts with fixing the market’s pain points
As of today, Larry Ellison has risen to become the world’s second-richest billionaire with a fortune of nearly $260 billion, surpassing familiar names such as Jeff Bezos and Warren Buffett.
The master sales secrets of luxury king Bernard Arnault that make the world spend
Billionaire Bernard Arnault, Chairman of LVMH (Moët Hennessy Louis Vuitton), controls more than 70 of the world’s most prestigious luxury brands, from Louis Vuitton and Dior to Moët & Chandon and Bulgari.
White House: When politics and technology join forces to rewrite the global AI order
The White House became the epicenter of global attention as U.S. President Donald Trump and First Lady Melania Trump hosted a high-profile state dinner, bringing together more than 20 of the most powerful leaders in technology and American business.
Warren Buffett: The contrarian billionaire – What can Vietnamese entrepreneurs learn?
Warren Buffett has never invented a piece of technology, created a product that changed the world, or relied on social media.
Vietnam Golf Course Owners Summit 2025: Driving sustainable growth in golf tourism and golf economy in Vietnam
Vietnam Golf Course Owners Summit2025 (VNGOS 2025), focusing on the sustainable development of golf tourism and the golf economy in Vietnam, will be held for the first time on October 30 - 31, 2025, at Laguna Lăng Cô Resort, Hue City.
President Luong Cuong’s visit to China: A message of Vietnam’s diplomacy
From September 2 to 4, 2025, President Luong Cuong led a high-level Vietnamese delegation to attend the 80th anniversary of the world’s victory over fascism and to carry out a series of high-level diplomatic activities in China.
Prof. Dr. Huynh Van Chuong: A strategy to elevate Vietnam’s education on the global stage
On the occasion of the 80th anniversary of Vietnam’s education sector and the opening of the 2025–2026 academic year, Professor Huynh Van Chuong shared insights on key achievements in education quality management.