Syed-Hamid-Albar

The Land Public Transport Commission (SPAD) has urged taxi operators to perform proper studies before adopting the business models used by ride-sharing services such as Uber and Grab. In a report by The Star, its chairman Tan Sri Syed Hamid Albar said good business models alone simply aren’t enough.

Instead, taxi operators need to ensure that the business models are adaptable to its wholesale style of operating. “For instance, a ride-sharing app driver would maintain his vehicle well because it is his own car and at his own expense. Taxi operators do not have the luxury of maintaining one vehicle alone. They have to manage the entire fleet, so they cannot adopt this method,” he said.

Syed Hamid also revealed that around 80% of public transport users preferred ride-sharing services compared to traditional taxis, a testament of their popularity. Even so, the SPAD chairman stated that this doesn’t mean taxi services can be phased out completely. “We need to look for a solution that will allow both taxi operators and ride-sharing services to co-exist,” he said.

Recently, the Transport Ministry announced that Uber and Grab drivers will be required to obtain a Public Service Vehicle (PSV) licence, as part of the move to regulate ride-sharing services in the country. However, its implementation is pending public feedback that will be gathered by SPAD.

Many taxi groups have expressed their displeasure with the authorities, including SPAD, for failing to take action against ride-sharing services in the country. Most insist that they are operating illegally (without valid licences), and have even taken extreme measures to voice their concerns, including street blockades.

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