Intensive competition with Grab, partner "escaped"



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Tracodi announced the decision to withdraw the entire capital of Vietnam Taxi Company.

Tracodi announced the decision to withdraw the entire capital of Vietnam Taxi Company.

Tracodi (TCD) has announced a decision to withdraw the total capital invested by Vietnam Taxi Company (Vinataxi), which corresponds to 30% of the fixed capital in Vinataxi. The total lease of capital in Vinataxi is almost 113 billion dollars.

Time to be held in November / 1818. Accordingly, Tracodi empowers Mr. Nguyen Thanh Hung – vice president of the board of directors of the cum of the Tracodi Director General, to negotiate the transfer price and, accordingly, is looking for investors who are interested in this transfer. .

The transfer price of Tracodi will not be lower than the current value of Vinataxi NPV shares in relation to its carrying amount.

At Tracodi's annual MTO shareholders' meeting, Tracodi said that Tracodi has a 30% stake, largely due to its partner ComfortDelgro, which accounts for 70% of its capital. The company negotiated with a partner to sign Vinataxi or go away.

According to the Consolidated TCDs for the third quarter of 2018, turnover and services in the third quarter and the first nine months of 2018 reached 133.7 billion VND and 536 billion VND. Profit before tax amounted to 8.86 billion VND and 30.42 billion VND. Both revenue and profit from Tracodi fell sharply in the same period.

Evaluation of business activities at the Vinotax joint venture in 2017, Tracodi said: Taxi operations are more and more competitive, alongside traditional taxis competitors, a new type of penetration into the Vietnamese market, such as Uber and Grab, is also facing.

"In 2017, Vinataxi revenues reached 47.6 billion VND and post-tax profits amounted to 1.2 billion VND. In general, Vinataxi's operations in the year 2017 affected the competition of similar Ubers, the Grabs. The company is also struggling with driver fluctuations and lack of the workforce, which has led to problems in increasing the number of vehicles, "Tracodi said.

In fact, the traditional tax market returned to this time constantly faced with difficulties in the emergence of foreign companies with new transport services, such as Grab.

One unit had to go through the closure of a huge competitive pressure – Savico Taxi. At the end of March 2018, Savico (SVC), together with its partner ComfortDelgro (the largest Singapore taxi company, which holds a 70% stake in Vinataxi), has restructured its taxis business at ComfortDelgro Savico. Taxi, treatment will ensure the goal of maintaining capital contributions from customers. At that time, the company temporarily suspended taxation, investigated and found suitable business opportunities.

At the General Meeting of Shareholders of Savico in 2017, the company said that taxation was hindered by the intense competition of Uber and Grab companies. Then the Congress decided to restructure taxicab business.

In June, the Singapore Investment Fund GIC managed to sell all 5.4 million shares in Vinasun in order to reduce losses, as the business results of the taxi company continued to decline.

In the meantime, Vinasun is a taxi company that most responded to taxi business. The company filed a lawsuit against Grab and claimed compensation for Grab for the loss it suffered in 2016 and over 40 billion in the first half of 2017.

Vinasun claims that Grab, although he claims to be a technology company, does not provide transport services but actually works, is Business Taxi, the same area with Vinasun. In addition, Grab has continuously launched the method of unfair competition, started the continuous promotion, devaluation.

A serious drop in sales, the driver of domestic taxis companies is a general situation in recent years and is expected to continue as Grab completes the acquisition of Uber – creating excellent competition. more, more cruel.

In a letter to the Prime Minister, a representative of Taxi from three regions said that Uber Grab's legal loopholes and business practices could lead to the dismantling of the tax system.

Representatives of these three associations listed only half of the members of the taxi company in HCMC in the HCMC itself. Ho Chi Minh has been disbanded, while the remaining units have been reduced to 30% of vehicles. In Hanoi, the number of vehicles is reduced by more than 35% of the total number of vehicles.

Nguyen Khanh

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