More taxi drivers leaving for Uber, GrabCar – report

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The times they are a-changin’ indeed. According to a report by The Star, more and more taxi drivers are leaving the industry by the day. The key reasons include a falling number of passengers and ever-increasing operating costs. No surprises on where theses ex-taxi drivers are headed to, either.

While exact figures remain unknown, it is said that a vast majority of former taxi drivers have jumped ship to ridesharing services such as Uber and GrabCar. “Based on [the] last quarter, we have [had] thousands of sign-ups coming in every week. Out of that, about 20% comes from the taxi industry,” said Uber Malaysia general manager, Leon Foong.

Evidently, the emergence of services such as the ones mentioned above have severely affected the income of taxi drivers in the local scene, with lower fares playing a key role. Calculations by the English-language daily reveal that a trip from PJ New Town to Bangsar LRT station would cost between RM8 to RM12 via Uber while a taxi ride for the same journey would incur a fare of RM11 or more instead.

The drop in taxi riders have, reportedly, cost drivers to lose between 20%-50% of their income while the operating costs doesn’t seem to make things any better. Recently, several associations representing taxi drivers have protested against the effects of the Goods and Services Tax (GST) as well as the impending hike for Natural Gas Vehicle (NGV) fuel in September.

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According to Indian Taxi Owner and Driver Association (Federal Territories and Selangor) secretary, S. Balakrishnan, a monthly operating cost increase of RM400 would further add to the burden of taxi drivers should the hike get the go ahead. “Maybe I will also go join Uber. We are all going to soon. If I chuck my car and join Uber or GrabCar, I won’t need to pay taxi insurance,” he commented.

Further adding fuel to the fire is the poor reputation of taxi drivers garnered by most passengers in Malaysia. According to Gabungan Koperasi Pengang­kutan Malaysia secretary, Mohd Salleh Mat Zin, the government’s lackadaisical attitude to addressing the complaints have further contributed to the downfall.

“I know five or six friends who have gone to Uber and GrabCar. How many in total? I don’t know,” said Salleh. “They have to pay the permit for their taxis and all the costs. A GrabCar can just come to a shopping mall, pick someone up and go,” he concluded.

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Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • thgh (Member) on Aug 24, 2015 at 10:44 am

    Who to blame? Want to cari makan also susah.

    Thanks Lebah N

    Like or Dislike: Thumb up 6 Thumb down 4
  • tokmoh. on Aug 24, 2015 at 10:48 am

    The top 20% smartest taxi drivers. Lower cost as less red tape, greater faith by customers.

    Taxi permit cronies and ganster/rapist taxi drivers can go fark themselves.

    Like or Dislike: Thumb up 44 Thumb down 1
  • BeemerFreak on Aug 24, 2015 at 10:53 am

    There are reasons why such online services don’t really work in countries like Singapore, that’s because they have a taxi infrastructure and network system that is impenetrable. No need to endure haggling, brand new taxi cars, flexible payment system, no need to negotiate price,large fleet availability and no choice for drivers on locations to be headed. Until our national taxi system is improved to such standards, expect Uber to make more inroads into our country.

    Like or Dislike: Thumb up 34 Thumb down 6
  • Ulkamikup on Aug 24, 2015 at 11:07 am

    Now taxi driver also cannot tahan already and jump ship. The whole taxi system are corrupted.

    Like or Dislike: Thumb up 30 Thumb down 0
  • sepul on Aug 24, 2015 at 11:09 am

    Taxi system in our country must change entirely.

    Like or Dislike: Thumb up 18 Thumb down 1
  • alldisc on Aug 24, 2015 at 11:34 am

    in actual fact, even though uber drivers win while competing with taxi drivers (when it comes to getting passengers) but they may lose as the charges are a little too low. unless their car installment is less than rm500 and the engine is frugal towards consumtption.

    otherwise, they may struggle a bit. besides, uber also have peak hours. lets just hoping that many and many more ppl will become user of ubers (or rider as they call it)

    Like or Dislike: Thumb up 7 Thumb down 0
    • macroemdia on Aug 24, 2015 at 1:55 pm

      TAXIs (bluebird) in jakarta follows meter and also charges low fare compared to here. Oh they also use petrol only, unlike here, they use super duper cheap NGV. It is not LOW what UBAR is charging… it is FAIR.

      Like or Dislike: Thumb up 3 Thumb down 0
  • white on Aug 24, 2015 at 1:09 pm

    blame the crony who monopoly the license.

    Taxi driver permit should not be commercialize

    Like or Dislike: Thumb up 27 Thumb down 0
  • Black Dog on Aug 24, 2015 at 2:19 pm

    So the news about SPAD catching Uber drivers and impounding their cars is just wayang kulit only?

    Like or Dislike: Thumb up 4 Thumb down 0
  • nabill (Member) on Aug 24, 2015 at 2:53 pm

    will they take their garbage attitude with them to uber as well ?? which kinda means , back to square one …

    Like or Dislike: Thumb up 6 Thumb down 4
  • satumi on Aug 24, 2015 at 11:41 pm

    I pray taxi driver die faster so we can have uber

    Like or Dislike: Thumb up 2 Thumb down 4
  • Romy Tan on Nov 22, 2015 at 3:17 pm

    Just sharing my frustration. What I wrote to grab here in the Philippines.
    Dear Grab Management,
    I am personally blessed to be accepted as one of your peers. When I learned that joining your fleet would somehow help me in terms of finances especially of my family’s, I did exert every effort possible just to apply for car loan to the hope that I can provide better living for my family.
    I unfortunately was not able to get a dip on the first incentives scheme and now, you even lowered the lowered incentives scheme. How would I be able to sustain my monthly amortization for the car loan? Is your lowered incentive scheme has something to do with UBER since they have no incentive at all? And for sure, your next incentives scheme would be lower than what you have previously offered until there would be none at all.How am I supposed to pay for the top-up? For the cost of the cellphone unit you issued? How am I supposed to provide stable income for my driver’s family? Where’s your heart in it? Stop clouding our minds with the holiday rush, of better opportunities for higher income? Metro Manila’s traffic is disaster and would get even worse this holiday season. How are we going to collect at least 8k? Don’t you even know that during APEC, my driver barely got riders? Stop using us just for your own dvantage. You earn a lot from us so you should at least incentivized peers and drivers fairly. Give necessary incentives which will encourage us to work harder.
    I regret now that I applied for car loan.A promise of good living was even ruined by your injustice. Oh well, you don’t understand the feeling of worrying a lot everyday by debts, food for the family, sicked loved ones because in any case, you will earn a lot from hardworking peers and drivers. Whoever is responsible for the worsening incentives scheme, I hope you won’t be on our shoes to worry on such cases. You too have families and I hope none of those won’t happen to you.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Fairuz on Dec 10, 2015 at 12:45 am

    Is uber n grabcar system really make the driver got good income compare to grabtaxi driver?

    really weird..in the paper and online,they dont talk about grabtaxi apps driver that have similar system with uber and grabcar even it is not the same…

    Grabtaxi apps driver maintain 4 to 5/star rating…any small problem made by grabtaxi apps driver,they will be banned forever…

    Got many of my uber and grabcar driver said it is hard to get rm100 nett profit per day…they need to work 12 hours…

    Because me as grabtaxi apps driver maintain rm100 to rm120 per day now…i just choose rm15 to 60 job….so im still thinking wether i need to join grabcar or not? Cause it is the same profit

    Like or Dislike: Thumb up 0 Thumb down 0
  • Fairuz on Dec 10, 2015 at 12:48 am

    Is uber n grabcar system really make the driver got good income compare to grabtaxi driver?

    really weird..in the paper and online,they dont talk about grabtaxi apps driver that have similar system with uber and grabcar even it is not the same…

    Grabtaxi apps driver maintain 4 to 5/star rating…any small problem made by grabtaxi apps driver,they will be banned forever…

    Got many of my uber and grabcar driver said it is hard to get rm100 nett profit per day…they need to work 12 hours…

    Because me as grabtaxi apps driver maintain rm100 to rm120 per day now…i just choose rm15 to 60 job….so im still thinking whether i need to join grabcar or not? Cause it is the same profit

    Like or Dislike: Thumb up 0 Thumb down 0
 

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