Ride-sharing app Uber introduced its motorcycle taxi service in Vietnam to tap into the huge market currently dominated by Grab, which launched its motorbike option a year ago.

The entry of UberMoto in Hanoi and Ho Chi Minh City has kicked off a price war, with GrabBike cutting fares in the two cities, TuoiTreNews reported.

The newspaper said the services are generally 10-15 per cent less expensive than regular taxis, except during rush hour.

GrabCar, owned by Grab (previously known as GrabTaxi), was recently recognised under a pilot programme by the Ministry of Transport that makes it the only legal car-booking app in the country. It has a two-year licence to operate in five cities.

Uber is still not legally recognised in the country and in February asked the Ministry of Transport for more time to complete the required procedures to comply with local laws.

Both car-hailing services have faced challenges from the government over their debatable legal status as well as repeated protests by local taxi drivers, despite being extremely popular.

Uber also recently introduced UberMoto in Thailand and Indonesia.