Vietnamese Ride-Hailing Drivers Protest Low Fares, Call for 'App Shutdown'

A movement is growing among ride-hailing drivers in Vietnam, particularly those working for Grab, to 'shut down their apps' for two days on September 12-13. This protest stems from dissatisfaction with low fares and high commission rates, with drivers demanding a review of the fare structure. According to Xuan Hung, a 28-year-old driver in Hanoi who has been working in the ride-hailing sector since 2020, his monthly income has significantly decreased. While he previously earned tens of millions of Vietnamese dong per month even working part-time, he now has to work 14-15 hours daily to maintain an income of around 30 million dong after switching to a car. Hung stated that the current platform pays only 4,000-5,000 VND per kilometer for car rides and 2,500 VND for motorcycles, which is lower than the 6,000-7,000 VND offered by other platforms. He also highlighted that the commission rate can reach 30-50% at times, with drivers bearing the costs of fuel and vehicle maintenance, making it difficult to cover living expenses. Discussions on online forums for ride-hailing drivers, which have over 312,000 members, reveal numerous complaints. Drivers report earning less than 150,000 VND after five hours of work. Some calculate their actual income to be as low as 2,000-2,500 VND per kilometer for short trips of 4-5 km. A car driver in Ho Chi Minh City shared that they received only 26,000 VND for a 4 km trip. Another car driver in Hai Phong reported receiving 157,000 VND for a trip that customers paid 262,000 VND for, with the difference attributed to various fees and taxes. Grab's representative told VnExpress that the platform's operations have been normal in recent days, with service quality indicators remaining stable. The company acknowledged the discussions within the driver community on social media and stated it is seriously evaluating the situation. Grab emphasized its commitment to maintaining drivers' livelihoods and ensuring service quality for users. However, adjustments to commission rates and bonus policies have repeatedly led to collective 'app shutdowns' by Grab drivers in the past. In 2017, Grab increased its service fee from 5% to 20% in Hanoi and Ho Chi Minh City, citing policy unification and increased competitiveness. This decision led many drivers to simultaneously shut down their apps and protest. In January 2018, a large-scale protest occurred nationwide when Grab raised its commission from 20% to 23.6% for both car and motorcycle services. The platform later reverted to the 20% rate. In mid-2019, GrabBike drivers gathered at the company's office in Ho Chi Minh City to protest an increased fee related to tax collection. Following this, Grab ceased collecting personal income tax from its drivers. In December 2020, hundreds of drivers in Hanoi and Ho Chi Minh City protested increased tax deductions and service fees from 20% to over 27.2%, a change linked to Decree 126, which stipulates a 10% VAT on total platform revenue. To ease tensions, Grab increased fares for both car and motorcycle services to offset the additional costs. During 2023-2024, sporadic complaints have surfaced in major cities regarding changes in order allocation algorithms, unstable bonus policies, and opaque account suspensions. Temporary service suspensions have been observed on Grab and other ride-hailing platforms. Mr. Le Tan Luu, Chairman of the Binh Tan Ride-Hailing Drivers' Union in Ho Chi Minh City, confirmed the recent decline in driver income. He attributed this to ride-hailing apps lowering fares to compete for customers while keeping commission rates unchanged. Luu noted that actual income also depends on bonus programs, with drivers working full shifts potentially offsetting reduced fares, unlike part-time workers. He advised drivers to avoid spontaneous gatherings or rashly shutting down apps, which could disrupt traffic, public order, and personal interests. Luu proposed that driver groups should compile data on unreasonable fares and appoint representatives to engage directly with the company and regulatory bodies to find common ground. Despite the calls for a shutdown, some drivers continue to operate. Duc Minh, a 45-year-old driver in Hanoi, stated, 'If I shut down the app now, my family will lose its source of income.' He plans to selectively accept rides with better fares. Source: VnExpress