Southeast Asian ride-hailing giant Grab has filed an appeal against a Vietnamese court ruling made last December. The Ho Chi Minh City People’s Court had ordered the company to pay local taxi operator Vinasun VND 4.8 billion (US$207,000) for causing operational losses.
Grab said it has requested the court to dismiss the case because it “has no jurisdiction” over the matter.
“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,” Grab said in a statement.
Decision 24 is a pilot programme put forward by Vietnam’s Ministry of Transport for operating ride-hailing platforms in Vietnam, and Decree 86 defines the conditions for offering transportation services. Both Grab and Vinasun are licensed under the programme.
Grab claims that the court “seriously violated the trial procedure”, alleging that it rendered a judgment exceeding a statement of claim’s scope, and failed to summon the court’s appointed assessor and witnesses requested by Grab.
In June 2017, Vinasun sought nearly US$1.8 million as compensation from Grab, accusing the Singapore-based company of abusing the pilot programme by operating as a taxi company. Vinasun had suffered US$3.25 million in losses in 2016 and the first half of 2017.
Grab offered to invest US$2.78 million in Vinasun, but the bid was refused. As the two companies were unable to reach a settlement, the trial resumed in December and the court made its ruling, ending the 18-month-long legal battle.
Editor: Brady Ng