Last update: 14:51 | 12/01/2018
GrabBike drivers in Ho Chi Minh City went on strike for the second time to protest the company's new hike in its revenue share to 23.6 per cent from the previous 20.
The strike was conducted ten days after Grab Vietnam applied the new ratio of 23.6 per cent. Numerous drivers either switched off or deleted the ride-hailing app, according to newswire Vnexpress.
Huy, a GrabBike driver, stated that he switched off the ride-hailing app two days ago. However, his resistance is still light compared to other drivers, who were hijacking the service by making false bookings to make life difficult for both passengers and those drivers who did not join the picket line.
Two days ago, GrabBike drivers gathered in front of the company to ask its Board of Directors to issue a satisfactory explanation. Since early last year, the revenue share of the company has seen continuous changes, putting drivers at a financial disadvantage.
Nguyen Trung Thanh, managing director of GrabBike Vietnam, affirmed that the further deduction of 3.6 per cent in drivers' commission is to pay for drivers' personal income tax, pursuant to local authorities’ new directions on personal income tax effective since January 1, 2018.
According to him, drivers having an annual income upwards of VND100 million ($4,406) or monthly income upwards of VND8.3 million ($365.73) are subject to personal income tax.
Nguyen Nam Binh, deputy director of the Ho Chi Minh City Department of Taxation, told Vnexpress that only a few GrabBike drivers in Ho Chi Minh City have annual incomes of VND100 million ($4,406), while other drivers are not subject to the tax.
Besides, there must be a compromise between Grab Vietnam and GrabBike drivers on the way Grab Vietnam pays the personal income tax on behalf of its drivers.
A representative of Grab Vietnam also explained that the company only introduced the share raise as a temporary measure. In case GrabBike drivers’ income is less than VND8.3 million ($365.73), Grab Vietnam will pay back this share to drivers the next month.
However, GrabBike drivers are not satisfied by the company’s answer.
Binh, a GrabBike driver in District 9, Ho Chi Minh City, said that in the first days of operation in Vietnam, the company committed to collect 10 per cent of the revenue as commission. However, within a short time, it increased the commission to 15-20 per cent, and now to 23.6 per cent. The added ratio is only 3.6 per cent, but it means anything from hundreds of thousands to one million dong.
“In general, I try my best to earn VND400,00 ($17.62) per day. In case the 23.6 per cent commission is applied, my revenue will decrease to roughly VND300,000 ($13.22) per day. I am considering another job with more stable revenue,” said Binh.
Ealier in August 2017, GrabBike drivers slammed the brakes in Hanoi to strike against the increase of the commission to 20 per cent from the previous 15 per cent.