The hike applies to all three services it offers in Vietnam, motorbike taxi, food delivery and goods delivery, and takes effect on Saturday, the Indonesian company said in a statement.

In Hanoi, a two-kilometer GoRide trip now costs 8.3 percent more at VND13,000, while in HCMC, it costs 10 percent more at VND11,000.

From December 5 the government mandated that ride-hailing companies should pay the VAT of 10 percent on the full fare passengers pay instead of just their share of it.

Gojek also increased the commission it gets from drivers from 20 percent to 27.2 percent like its competitor Grab did recently.

But it assured that the increase would not affect drivers’ incomes.

A trip that cost a passenger VND51,000 before would now cost VND56,000, but the driver’s income would remain unchanged at VND40,000, it said.

Grab last week raised its fares by 5-6 percent and increased its commission by over 7 percentage points, causing hundreds of drivers in Hanoi and Ho Chi Minh City to strike.