Accordingly, in the discussion, shareholders questioned the company’s leadership on the problem of Vinataxi’s existence (TCD holds 30% of capital) in the face of intense competition from Uber and Grab.
The representative of the taxi company, claiming, said this is a difficult time for traditional taxi companies to compete with the two firms. The traditional not only compete for customers but also face shortage of drivers.
In the immediate future, the company will maintain its key locations where the “rivals” have not yet penetrated into, such as airports, hospitals, hotels… Besides, the company will expand to neighboring markets where two competitors are not present.
In regards to this investment, the shareholders also approved the supplement of the new business line – advertising services to the public.
Nguyen Ho Nam, vice president and general director, explains that the current taxi company that the company invests in has over 500 vehicles. Most of the taxi companies, the ads-on-vehicle brings about 10-15% of sales so the company also wants to take advantage of this source of income and expects to bring about 5-10% of sales.
Shareholders also questioned the ability to complete the business targets in 2017, TCD leaders said that it is likely to exceed the previously set target, revenue of more than 900 billion and profit of 62 billion.
The meeting also approved the addition of Mr. Lin Kuo Wei (Taiwanese nationality), Director of DWS Star Bridge Limited Liability Company, to the position of Board Member.
According to Mr. Nguyen Ho Nam, Lin Kuo Wei will be overseeing the activities of the Board, supporting the business operations of the company.
Moreover, the organization is also interested in Vietnam’s infrastructure projects, thus, posibly they will cooperate with TCD in real estate infrastructure in the coming future, as TCD soon will work on 300ha BT projects in Long An.
The Board also submitted the plan to issue a maximum of 1 billion dong or 50 million USD of convertible bonds or bonds, term 3-5 years with a maximum coupon rate of 5% for USD loans and 12 % for VND.
The purpose is to raise capital to carry out projects, working capital for business or refinance loans for the company’s projects. After 3 years, the bondholders have the right to convert with the price of not less than 15,000 VND/share.
Tram Huyen
Source: http://bizlive.vn/doanh-nghiep/vinataxi-tim-ke-nao-canh-tranh-voi-uber-v…