Grab to appeal against Vietnam court ruling that it pays compensation to Vinasun

RIDE-HAILING service Grab will appeal against a Vietnamese court order that it has to pay taxi operator Vietnam Sun Corp (Vinasun) 4.8 billion dong (S$282,645) in compensation over a violation in taxi regulations, it said on Friday.

On Dec 28, the court found that Grab had violated taxi regulations because it operates like a taxi company instead of a technology firm, according to Reuters, which cited a report in Vietnam's Tuoi Tre newspaper. The judge reportedly said that there may be a link between Grab’s operations and a loss in revenue for Vinasun, although that may not have been the only factor.

In a media statement, Jerry Lim, country head of Grab Vietnam, said that the company will seek a reversal of the court’s decision. “We hope the higher court will study the legal arguments and case documents closer in order to rule responsibly for the best interests of consumers, a fair business environment and most importantly, for the assurance of a civil justice,” he said.

Grab also said that it is prepared to launch a defamation suit against Vinasun and other parties if “there is no retraction of the baseless allegations made towards Grab over the past months”.

The latest developments come about a month after Grab and Vinasun had agreed to “consider amicable arrangements” to settle the dispute out of court.

Vinasun filed the lawsuit last year accusing Grab of unfair business practices. It had demanded compensation of US$1.86 million for losses suffered between January 2016 and June 2017.