Cash-to-driver payment scheme for Uber and Grab services poses legal problems – local taxi company

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The cash-to-driver payment system, which is available for both Uber and Grab, would allow ride-sharing service operators to push the blame to their drivers if any legal problems arise, according to a Malaysian taxi company operator. In a report by The Star, Big Blue Capital founder Datuk Shamsubahrin Ismail (pictured above) said drivers of these services should “not be tricked” by the new system.

Ismail claimed that with this payment system, Uber and Grab will not have any direct involvement of the trade of service and currency in the ride. Therefore, should any unsatisfied customers take legal action against drivers, the companies will be able to push the blame solely to the drivers.

“They can say, I don’t collect the money. I am only the app provider, whoever wants to use it, use it lah [sic]. Uber and GrabCar do not want to carry the blame and responsibility of operating and shift it to the drivers. So after this, in court, the drivers will be blamed,” he said.

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The cash payment system can also expose drivers to legal issues for collecting money for a service which has yet to be licensed by the Land Public Transport Commission (SPAD), Shamsubahrin claimed.

Currently, Uber offers cash transactions to its riders in Johor Bahru and soon, in Kuala Lumpur. Penang and Ipoh are expected to follow suit, as the payment system is being tested there as well.

Grab meanwhile, has long introduced cash payments for customers using its ride-sharing services (called GrabCar previously). The company announced in November 2015 that it will accept cashless forms of payment (credit card).

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“I feel sorry for the drivers. They are being tricked by Uber because they will be the ones accepting money from the public without authority or approved licences. That becomes money laundering and Bank Negara can take action against them,” he said, adding that the central bank, SPAD and the Transport Ministry should put a stop to Uber and Grab’s operations until all the issues have been ironed out.

The road to legalising ride-sharing services like Uber and Grab have now reached a stage where the Transport Ministry has declared that its drivers will be required to obtain a Public Service Vehicle (PSV) licence. Across the Causeway, Singapore Uber and Grab drivers are required to obtain a Private Hire Car Driver’s Vocational Licence (PDVL) should they want to continue on as a driver.

What are your thoughts on the matter? For those who operate as Uber and Grab drivers, will Shamsubahrin’s statement discourage you from continuing to provide the service? Let us know in the comments below.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Why not in JAIL? on Apr 26, 2016 at 3:31 pm

    In May 18 of last year, Datuk Shamsubahrin Ismail was sentenced to a total of 73 years’ jail for money-laundering and cheating National Feedlot Corporation (NFCorp). I have no idea why he is running around here and making all sorts of comments.

    Or our Prison system can give free cuti to inmates?

    Well-loved. Like or Dislike: Thumb up 96 Thumb down 1
  • Semi-Value (Member) on Apr 26, 2016 at 4:28 pm

    bestnye prison malaysia

    Like or Dislike: Thumb up 12 Thumb down 0
  • duduk diam2 la latuk
    kami suda tak mau naik teksi latuk
    service teksi lu manyak teruk wooo
    lagi driver teksi samseng macam sohai
    sembelih duit kami macam lanjiou

    Like or Dislike: Thumb up 9 Thumb down 1
  • Bendul on Apr 26, 2016 at 4:36 pm

    Teksi Bandar pon amik cash.

    Like or Dislike: Thumb up 9 Thumb down 1
  • Con the jail on Apr 26, 2016 at 4:44 pm

    Anything related to uber or grab car must be legal problems.Just amend the law & make it legal why so fuzz? The law come from God isit? It’s human law can change anytime what.God’s law on corruption simply break pulak.

    Like or Dislike: Thumb up 17 Thumb down 0
  • JASON THAM on Apr 26, 2016 at 4:54 pm

    While the comment may be valid in some other countries, in Malaysia it does not stand because first of all what you sign with uber or grab car is only a formality – you may not know exactly the contents of the contract; secondly, the cash payment received is actually a donation which is non-taxable and apparently is a valid excuse for receiving unexplained cash. So here in Malaysia, if there’s any legal dispute with the passengers, it’s really difficult to put the up a case against the driver !!!

    Like or Dislike: Thumb up 9 Thumb down 1
  • Robcar on Apr 26, 2016 at 5:10 pm

    There is nothing to worry because enforcement is so poor in the country. So, what license is he talking about? There are few thousands of unlicensed car driver in the country and excluding the foreigners…… So?????? If you can’t win, then just join them and be part of Grab or Uber. No point talking this law or that law.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Chill on Apr 26, 2016 at 6:02 pm

    I guess, money laundering to Datuk is just merely accepting money. Will Bank Negara give him the Anti Money Laundering class please… He might have consult NFC wrongly that made the company house cows in luxury condo.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Pondan on Apr 26, 2016 at 9:46 pm

    So lame. The whole world is moving forward and only cronies agenda is at stake. Is a very sad state in deed.

    Like or Dislike: Thumb up 0 Thumb down 0
  • irony on Apr 27, 2016 at 9:08 am

    Better la if can blame the driver directly.

    Right now, if you get poor taxi car & taxi driver, you can’t blame anyone. Even if you write 1000 report to SPAD, but still you see the same car & same driver on the road. So, what makes the taxi better actually?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Najib on Apr 27, 2016 at 1:30 pm

    OMG is this guy serious??

    Receiving money for taxi service is called money-laundering now?

    What about those over-charging cab drivers? That’s called charity is it?

    Like or Dislike: Thumb up 2 Thumb down 0
 

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