Uber faces ban against its services in Vietnam image

The car-sharing business sector has been growing tremendously in recent years, with Uber Technologies among the best known such service providers. They’re just as known for their cheap smartphone rides as for the worldwide protests and bans.

The latest of the latter category comes all the way from Vietnam, where the country’s government has decided that the San Francisco-based company’s online car-booking feature violates the Vietnamese laws and has been deemed illegal. The service, which uses a mobile-based smartphone application to compete with traditional cab and limo services, has been declared illegitimate as it tries to emulate a regular cab service in Vietnam, said the government on its official website – according to the country’s Deputy Transport Minister Nguyen Hong Truong.

Uber’s taxi-like operations are seen as a huge threat to cabbies around the world and in Vietnam the Ho Chi Minh City Taxi Business Association reported the service. It is yet unclear when the service has to cease operations in the country – where it only started doing business on July 31. This is the latest setback for the company as it expands operations in Southeast Asia and comes shortly after Thailand warned people against using the app and said that any driver that uses private cars to provide a commercial service would be penalized.

Via Bloomberg