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Complaints from tuk-tuk drivers over competition from electric taxis prompted the transport ministry on Wednesday to suspend ride-hailing app WowNow from using its fleet of electric cars, citing regulations, officials said.
Chhuon Vorn, director-general of the General Department of Land Transport, said in a video posted on the department’s Facebook page that the company had been ordered earlier this week to stop using “company-owned vehicles” to transport passengers through its app.
Vorn said WowNow had agreed to comply with the directive and would halt the use of its own vehicles in ride-hailing operations.
He added that the Ministry of Public Works and Transport had also held meetings with other ride-hailing companies to discuss a directive banning firms from operating company-owned vehicle fleets through app-based transport services.
The move followed complaints from drivers and concerns that some companies were not complying with regulations, Vorn said.
WowNow, a Cambodian super app launched in 2020 offering tuk-tuk ride-hailing services, expanded into electric vehicle taxi services last year through a partnership with rental agency Avis Cambodia.
The company also in 2022 partnered with Prince Bank on digital payment integration and with Prince Supermarket on a co-branded supermarket expansion. Both firms were sanctioned by the United States as part of sweeping measures targeting conglomerate Prince Group over alleged links to online scams, money laundering and human trafficking operations.
WowNow has not been accused of wrongdoing. Prince Group has denied criminal allegations.
Orm Vanna, a tuk-tuk driver who works with several ride-hailing platforms, including WowNow, said drivers had complained to the ministry that the company’s electric taxis charged fares similar to tuk-tuks.
He said the pricing was “not fair” and had cut into drivers’ incomes as many passengers preferred electric vehicles.
“I agree to suspend that service,” he said. “Before, we could earn around 100,000 riel ($25) a day through the WowNow app. Now, we can barely make 40,000 riel ($10) because customers prefer the company’s EV car service.”
Dozens of WowNow electric vehicle drivers also petitioned the labor ministry on Wednesday after the suspension, saying they had been unable to work and calling for the service to be reinstated.
The ministry said in a statement it had heard their request and would “continue discussions with relevant parties.” It added that the drivers agreed to “remain silent” to avoid actions that could “disrupt public order” while negotiations continued.
WowNow did not immediately respond to a request for comment sent to the email listed on its website.
