uber-x-car

According to a report by Kosmo, the Land Public Transport Commission (SPAD) is in the process of making amendments to the Land Public Transport Act 2010 that allows them to take direct action against ride-sharing app providers like Uber and GrabCar.

Currently, ride-sharing apps are deemed a legal service by the Malaysian Communications And Multimedia Commission (MCMC), while those providing the service without valid documents are not.

A source within SPAD told Kosmo that the commission is studying the Act closely before bringing their mandate to the Attorney General’s Chamber. From there, the amendments will be handed over to the Government, to be proposed in Parliament.

The source claims that the amendments to the Act is just, in order to curb the operations of ride-sharing apps or what is referred to as teksi sapu. “The Land Public Transport Act 2010 only allows enforcement against unlicensed vehicles and not against the ride-sharing app. This makes it difficult for the SPAD to combat against this illegal service as a whole.

easy-taxi-super-easy-taxi 268

“If the Cabinet approves the amendments to the Act, it allows the SPAD to take action against the app providers that offer these teksi sapu services, and I believe it will provide an impact against this illegal operation,” the source said.

Continuing on, the source says that the Uber and GrabCar service needs to be banned as it invites risk to its passengers. “Even though all private vehicles have their respective insurance and road tax, those used to provide Uber and GrabCar services are registered for personal use and not for commercial purposes.

“This inappropriate use of the vehicle can result in insurance companies denying any compensation in the event of any vehicle damage/loss, or injury to the driver and passenger,” the source added.

As of current, the report states that SPAD has taken action against 144 vehicles (97 from GrabCar, 43 from Uber, three from Easy Taxi and one from Black Lane) since October last year that were believed to be used for ride-sharing duties. From that figure, 110 vehicles were impounded while the remainder are in the process of undergoing investigation.

Malaysia-Taxi-01

The source said, “SPAD will request the court to strip the vehicle rights of the 110 impounded car. Action will be taken against them after it was discovered that they failed to operate within their licence class, prepare proper permits or documents, unauthorised licence transfer and operating without a permit.”

This report comes merely a week after taxi drivers held a protest in Kuala Lumpur, demanding for ride-sharing services to be banned, and for SPAD’s leadership to be “reshuffled”. The taxi drivers also threatened to block several main roads in the city if its demands are not met.

Keep in mind that nothing is set in stone for now, as amendments to the Act will take some time. What do you think of SPAD’s plan to ban ride-sharing apps like Uber and GrabCar entirely?