In a controversial move, Uber recently announced that it is increasing its fares in Hanoi.
According to VnExpress, the only affected service is UberX, whose minimum fee is now VND15,000 instead of VND10,000. The per kilometer rate also received a 50% hike from VND5,000 to VND7,500.
Ride-hailing apps are an especially cutthroat market in Vietnam, particularly in metropolises such as Saigon and Hanoi, where a duopoly – Uber and Grab – vies for user attention with scores of discount campaigns. Thus, Uber’s fare hike comes as a surprise. So far the company hasn’t provided a reason for the move, which will most likely reduce its competitive edge aginst rival Grab.
Uber’s journey in Vietnam has been anything but smooth sailing since its arrival in the country in 2014. In September, the company came under fire for allegedly dodging taxes on as much as VND1 billion (US$44,750) worth of profits daily; however, Uber has since paid its dues. Just last month, the company again found itself in trouble with the government for its contentious #SaigonThatThu ad campaign during the city’s notorious stormaggedon episode.
