Taxi operators must conduct proper studies on Uber, Grab’s business models before using them – SPAD

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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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

  • “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,”

    So, does that mean taxi operators can have run down, falling apart cars and we’re just supposed to accept it?

    Like or Dislike: Thumb up 27 Thumb down 0
    • Gargantia on Apr 27, 2016 at 5:48 pm

      Tan sri just know how to criticise and blame Rakyat except themself… BN culture of ministry.

      Like or Dislike: Thumb up 17 Thumb down 1
      • Albert on Apr 27, 2016 at 7:10 pm

        Gargantuan,
        This shit is the result of a philosophy called EVERLASTING PERLINDUNGAN.
        There are many honest normal taxi drivers affected by this shit.
        Not all are samseng gangsters.My friend is a normal taxi driver,just started paying for his persona when all these shit unravel.
        It is wayang je….after things have cooled ,you will see mass approvals for whatever shit business whoever is accused of ” being part of”.
        Remember, your own shit will fall back on your head one day,if you plan evil and take wealth immorally.

        Like or Dislike: Thumb up 9 Thumb down 0
        • Gargantia on Apr 27, 2016 at 10:26 pm

          Alberto, good explanation you have there… hope the ministry will REALLY understand Rakyat “comments and suffering”.

          Like or Dislike: Thumb up 5 Thumb down 0
    • Then where the money collected from taxi drivers go? One day rm50. 30 days = rm1,500. 50 taxis in one fleet = rm75,000 a month.

      Day light robbery

      Like or Dislike: Thumb up 11 Thumb down 0
      • demit nyalbar on Apr 28, 2016 at 12:53 am

        bayar kereta rm5k, bayar rumah rm10k, bayar amois rm 10k, beli bag cincin rm 20k, jalan2 us eropah rm 30k. sudah abis rm75k. how to live rm75k/month…

        Like or Dislike: Thumb up 1 Thumb down 0
  • Garutelo on Apr 27, 2016 at 4:48 pm

    Porrrrrrrah…cittt…cittt..citt!

    Ini olang sudah cakap serupa tarak cakap.

    Like or Dislike: Thumb up 7 Thumb down 0
  • HUH?????? WOOT~~~~~study what?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Saitam on Apr 27, 2016 at 5:36 pm

    The government should conduct proper studies before appointing you.

    Like or Dislike: Thumb up 14 Thumb down 0
  • Kan-i-na.

    Like or Dislike: Thumb up 16 Thumb down 0
  • Ben yap on Apr 27, 2016 at 6:42 pm

    Ban taxi. Problem solved.

    Like or Dislike: Thumb up 5 Thumb down 0
    • tong sardin on Apr 28, 2016 at 12:02 am

      Not BAN Taxi, just BAN PERMIT.

      PERMIT CHARGE a TAXI DRIVER RM 30 per day..
      That not include CAR price.

      In the end- RAKYAT suffer cheated. As commitment to PERMIT.
      What permit do?

      Taxi driver please register join UBER and abandon the TAXI & this no BRAIN Botak

      Like or Dislike: Thumb up 3 Thumb down 0
  • Arnold on Apr 27, 2016 at 9:48 pm

    What a stupidity comment by a chairman who’s under the Prime Ministers Department!
    Ride sharing app drivers could maintain their cars because it’s their own but taxi drivers couldn’t maintain their taxis cause it’s not their’s!

    Like or Dislike: Thumb up 5 Thumb down 1
  • Passerby on Apr 28, 2016 at 3:53 am

    want to corrupt just say it la… no need pusing here pusing there… how many he want? 2.6bil?

    Like or Dislike: Thumb up 2 Thumb down 0
 

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