Prosecutors in Ho Chi Minh City (HCMC) have rejected a court decision that orders Singapore ride-hailing company Grab to pay local taxi firm Vinasun more than US$206,000 in compensation, or just over 11% of Vinasun’s original claim, according to local media reports.
Grab and Vinasun have been locked in a legal battle since June 2017. In December, the court ruled that Grab had caused operating losses for Vinasun after the taxi operator accused Grab of abusing a pilot programme by Vietnam’s Ministry of Transport.
But the chief prosecutor in HCMC is challenging that verdict, arguing that the company “has not committed any illegal act” and that “there is no casual link” between the damages claimed by Vinasun and the alleged violations it accused Grab of committing.
After the court made a ruling in December, Grab immediately indicated that it would appeal the decision.
The chief prosecutor argued that the court’s verdict was “baseless” because government authorities authorised Grab’s business and the company operated “in accordance with the pilot programme to support the connections of passengers and drivers using technology”.
In the same brief, the chief prosecutor also dismissed Vinasun’s claim that Grab had caused the company damage, saying the taxi operator’s drop in revenue could be due to its own corporate governance capabilities, the firm’s service quality, competition from various types of passenger transportation businesses, or other factors.
Vinasun has not issued a statement regarding this development.
Editor: Brady Ng