Southeast Asian ride-hailing company Grab on Friday, January 11, filed an appeal against a Vietnamese court ruling that ordered it in December 2018 to pay local taxi operator Vinasun 4.8 million dong (roughly US$200k) for causing it an operational loss.
The ride-hailing company claimed the Ho Chi Minh City Court had no jurisdiction over the case.
“If the appellate court does not dismiss the case, it is requested to amend the first instance judgment to determine that Grab does not carry out a transportation business, does not violate Decision 24, Decree 86 and dismiss entirely Vinasun’s case,” Grab said in a statement.
Decree 86 provides for the conditions of doing business in the domain of transportation, while Decision 24 is a pilot programme by the local government to operate e-hailing services. Both Grab and Vinasun are among companies licensed under the programme.
Vinasun had filed a lawsuit against Grab in 2017, accusing the latter of causing it a US$1.8 million loss by indulging in unfair business practices. A failed attempt at an out-of-court settlement later, the Ho Chi Minh City Court asked Grab to pay US$200,000 in compensation to Vinasun, determining that the ride-hailing unicorn was partly behind Vinasun’s loss.
The Vietnamese court also ruled that Grab violated local regulations since it operates as a taxi company, and not just as a technology firm. However, the ride-hailing firm continues to contend it is a technology company.
“VinaSun could not prove its actual damages and/or the causal link between any of Grab’s alleged violations and Vinasun’s alleged damages,” the ride-hailing company affirmed.
After acquiring Uber’s Southeast Asian operations, Grab has encountered a lot of legal challenges in the region. Singapore ruled the merger anti-competitive, while the Philippines approved the transaction, but with certain conditions.
In December 2018, Vietnam’s antitrust authority stated it believes the Grab-Uber deal has violated the local competition law and is awaiting a final verdict by the Competition Commission.
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