The Regulatory Challenges of Ride-Hailing Platforms in the Lao PDR

Technology has transformed urban transportation. Traditional taxis, once limited by fixed routes, meters, and dispatch centers, have been reshaped by ride-hailing apps like Uber, Grab, as well as those specific to the Lao market like Loca, Kokkok, and XanhSM. These platforms connect passengers and drivers through mobile applications, enabling instant bookings, dynamic pricing, and cashless payments.

While offering greater convenience and competition, they also raise complex legal and regulatory issues. Governments worldwide continue to debate how to classify these platforms—as transport operators, digital marketplaces, or some sort of hybrid model—since that will determine how laws on licensing, taxation, labor, and consumer protection apply.

Regulatory Interpretation

The laws of the Lao PDR do not clearly define or distinguish between ride-hailing platforms and online taxi platforms. Therefore, app-based transport services may be regulated in a manner similar to online taxi platforms, which function more like conventional taxi companies—the platform company owns or controls the vehicles and employs the drivers—except that the transportation services are provided through a digital booking application. In contrast, a ride-hailing platform functions primarily as an intermediary that connects independent drivers with passenger customers through a digital application. While the platform may conduct background checks or screen drivers to ensure safety and service quality, the drivers are typically not employed by the platform company, and no employment relationship is formally established.

Some platforms operate hybrid business models that combine both in-house employed drivers and independent drivers who use their own vehicles or lease/rent the company’s vehicles, and are not formally employed by the company.

On 6 October 2025, the Ministry of Public Works and Transport (“MPWT”) issued Notice No. 23902 on the Management of Taxi Operation Services conducted via Online Platforms or Applications, and Notice No. 24160 on the Use of Non-regular Route Public Carrier – Online Taxi Services, both of which aim to clarify regulatory requirements and strengthen the oversight of online taxi service operations.

Notice No. 23902

This notice sets out the following guidelines and requirements to ensure customer safety and prevent commercial conflicts:

• Online taxi operators must maintain a physical office in the Lao PDR for correspondence purposes.
• Online taxi operators must obtain a passenger transportation license in each province where they operate.
• The online taxi operators must ensure that their vehicles all have copies of their vehicle registration book, annual transportation permit, road tax payment receipt, other tax payment receipts, and passenger insurance.
• Drivers must have a driving license, identification card, taxi service training certificate, proof of affiliation with a company or association, and employment identification card.
• Vehicles must pass technical inspection; be equipped with a taximeter, front-and-rear dash cameras, and an internal dash camera; be new; have a commercial vehicle license plate; have window tinting not exceeding 20% (or not tinted at all); display the MPWT transport vehicle sticker; comply with the company’s designated color; and display the company’s contact number.
• The online platform or application must be approved by the Ministry of Technology and Communications before the MPWT’s Department of Transport issues the online taxi license.
• Service fees must be approved by the MPWT’s Department of Transport.

The notice does not explicitly state that a driver must be an employee with the application or platform operator under a formal employment contract. However, the term “proof of affiliation with a company or association and employment identification card” may be interpreted to mean that drivers must be employees of a company licensed to carry out transportation services or members of the Passenger Transportation Taxi Associationor another duly-recognized association, thereby creating a potential restriction on the use of independent drivers.

Furthermore, the requirements for drivers to have a taxi service training certificate, and for cars to have a taximeter installed and commercial vehicle license plates suggest that the MPWT may intend for ride-hailing platforms to be treated and regulated as taxi services.

Notice No. 24160

This notice includes a list of approved online taxi service operators and their respective applications, as follows:

• Loca Company Limited – App: Loca – Lao Taxi & Super App
• Lao Smart Mobility Co., Ltd. – App: Kokkok Move
• XanhSM Sole Co., Ltd. – App: Xanh SM: Book EV Rides
• Transport Logistic Co., Ltd. – App: Not specified
• VK Transportation Development Sole Co., Ltd. – App: Not specified
• Sokdee Public Transport Sole Co., Ltd. – App: Not specified
• Passenger Transportation Taxi Association of Vientiane Capital – App: Not specified

This indicates that other companies or online taxi applications currently operating in the Lao PDR that are not included in the above list may not yet have obtained the necessary licenses or regulatory approvals or may still be undergoing the approval process.

This article is provided for general information only and does not constitute legal advice. If you have any questions or need any professional support or clarification regarding to the above, please contact the undersigned or your usual VDB Loi adviser.