Barely two months into the launch of UberMOTO and GrabBike in Thailand, the government ordered a discontinuation of both companies' motorbike taxi-hailing services on Tuesday.

According to Reuters, Nunthapong Cherdchoo, a senior official at the transport ministry, said the decision came after ongoing conflict between the ride-hailing companies and other registered taxi services.

The turn of events will no doubt affect Uber's and Grab's market share in Thailand.

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Traveling around Thailand on a motorbike is an ideal option, seeing as the country's capital, Bangkok, ranked the second-most congested city in the world last year.

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Motorbikes enable passengers to get to their destination in a fraction of the time that a car takes, thanks to its ability to weave through traffic.

Currently, there are more than 186,000 motorcycles registered to provide taxi services in Thailand.

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In a statement, the Singapore-based Grab, said that they were working with the Thai government to resolve any conflict.

"GrabBike offers a service that reduces traffic in Bangkok, one of the world's most congested cities," the statement read. "Staff are well-trained and insured."

To date, Thai authorities have arrested 66 UberMOTO and GrabBike motorcyclists. These drivers face fines of up to 4,000 baht ($112) and repeated offenders will have their licenses revoked.

We've reached out to Uber for comment.


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