There are now too many cabs for the city to handle, thanks to the two ride-hailing firms.
Authorities in HCM City have instructed ride-hailing firms Uber and Grab to delay any plans they have of expanding their fleets in the southern metropolis.
The city’s transport department said it needs to better manage the number of cabs operating in the city to prevent further gridlock.
The department will also provide a list of cars under nine seats that have been registered with Uber and Grab for the city’s police department.
As of late 2015, the city had only 200-300 cars under nine seats being used by transport firms that agreed e-contracts with their customers, but thanks to Grab and Uber, that figure has climbed to more than 23,000 today.
The city also has more than 11,000 traditional taxi cabs that enter into what the city terms as paper contracts with their clients.
In all, there are more than 34,000 cabs in the city, far beyond the city’s plan of holding the figure at less than 12,700 in 2020.
The city’s traffic police department pointed out recently that the large number of cabs is one of the reasons for chronic gridlock in the city.
The city is also considering a plan to introduce a congestion charge to restrict the number of four-wheel vehicles that enter the downtown area.