Taxi and app-based ride hailing services are set for a revamp in Malaysia by the end of this year. Reported by The Sun, Malaysia’s “e-hailing” model is dubbed as the first of its kind in the world, and will create a level playing field between Uber/Grab drivers and conventional cabbies for efficient and well-priced services. This also means that Uber/Grab would be legalised, and regulated.
This follows an endorsement by the Special Economic Committee (SEC) chaired by Prime Minister Datuk Seri Najib Abdul Razak. A proposal regarding the matter was submitted by the Land Public Transport Commission (SPAD) to SEC last month and it included details to revive and transform the conventional taxi industry. The “e-hailing” proposal is expected to be presented to the Cabinet for the final green light later this month.
The Sun says that among the proposals for the taxi industry is a profit-sharing concept. This guaranteed percentage of the day’s takings for cab drivers is similar to the business model practised by Jakarta’s Blue Bird Taxi Company and the Dubai Taxi Corporation, among other taxi companies worldwide. SPAD will also introduce an Uber-style app for taxis.
For Uber/Grab drivers, it won’t be as hassle-free as today. “A person offering his or her private vehicle as taxi service must obtain a public service vehicle (PSV) licence and register with SPAD for vetting purposes. Private cars used as taxis will be required to undergo annual inspections with Puspakom along with enhanced insurance coverage just like taxis,” a government insider told the free daily.
“Private cars with ASEAN NCAP ratings will be given priority in addition to the safety specifications set by the Road Transport Department,” the source added.
The report points out that the “e-hailing” initiative will see around 130,000 Uber and Grab drivers (some part-time) co-exist and compete with 67,000 active taxi drivers throughout the country, including 36,000 cabbies in the Klang Valley. The government also plans to subject Uber (the company) to taxes. “For a while, Uber passengers’ credit card transactions have seen massive flow of the ringgit out of the country,” the insider said. The app-based services have been very popular with urbanites.
SPAD CEO Mohd Azharuddin Mat Sah confirmed to The Sun that its presentation received positive response from the SEC. “Now we are in the midst of fine tuning the paper to Cabinet in the next few weeks,” he said.
Commission chairman Tan Sri Syed Hamid Albar said should the Cabinet give the green light, “several laws need to be amended such as the Land Public Transport Act 2010, Road Transport Act 1987 and Communications and Multimedia Act 1998.” The legislation process may take place this month or October in Parliament, and SPAD is currently working with the Transport Ministry and Malaysian Communications and Multimedia Commission, he added.
“If everything goes well, a new dawn of taxi industry may begin end of the year,” Syed Hamid declared.
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the private car quality any time better than those wira/iswara/saga taxis!
I love it when when clowns keep telling ‘something’ will be implemented, introduced, or in this case legalised by ‘certain date’….
Almost never true…
Cut the bulls*t and introduce it today!! Stop talking in the media for glamour (most of the time you sound stop*d, and get to work, organise a workable plan then introduce it!!!
It’s to uber and grab’s benefits that it keep on dragging to be legalized, so that no one can ban them or impose unlawful rule at them. Malaysia works best in grey area.
Thanks SPAD for getting rid of cronies. Dont forget to go after the Taxi monopoly at KL Sentral and KLIA. This cronies charge a lot extra, just for giving the ticketing service. Totally not worth it.
once you go uber, you won’t wanna go back to normal taxi. not to forget the taxi driver’s attitude.
Once you go opposition, you won’t wanna go back to umno. not to forget umno minister’s attitude
Whatever said, TPPA is already there! Uber is USA product and Grab is Malaysia. Now there it goes for TPPA-era business. Compete! We have to swallow that. Old scholl taxis…? Ermmm…
Good solution, level field for everyone.
But after this if public still prefer Uber over taxis, then don’t complain or protest again ya.
why you need to create fair environment for the taxi driver.. all this while, they never care consumer demand until something better come out.. suppose spad go and reform the taxi for them to compete with uber and grab.. not the other way round..
First, they should fix the attitude of the current taxi drivers by setting up an academy. This academy would nurture true talents and those who are passionate to be a taxi driver (learn from the japanese). Second, adopt a standard car for each different segment that would remain viable for up to three years, then replace it with a newer model (eg. Merc e-class). Thirdly, enforce strict rules to those who violates the taxi driver code by barring them from driving a taxi, this would ensure the quality would be maintained with good taxi driver. Fourth and last, let the market decide, at the end of the day, the market determines their preferences. Learn and improve from feedbacks.
Uber and grab drivers better rake in all the money and ditch these companies before legalization starts. Big hassle for uber and grab drivers.
Why we need keep those rubbish? just keep clean.
What happen to Mini Bus after KL change to Intrakota? They all operated at outskirt of KL. Same goes with Taxi, your lousy services can only satisfied kampung people that usually has less demand….
It’s no secret that supporters for the present government are from the rural areas. Taxis can go outskirt and serve their comrades. They would be so ignorant and they wouldn’t even know when being ripped off by taxi drivers
Level the playing field? Taxis is registered as commercial vehicles and are tax free, do uber/grabcar drivers get to buy their transportation vehicles tax free? Will app-sharing vehicles be allowed to be hailed down like normal cabs? Can app-sharing vehicles charge the same as taxi fares which is twice the rate (mind you using an actual meter rates, not the ask the sky rate from gangster taxi driver). Just an sxcuse to try and make things more difficult for uber/grabcar so that they can continue to monopolize private transportation industry.
In b4 whatever Gov do to synergise both services is tabouleh, but France upcar uber car is boleh. Just cuz they r foreign overlords.
I have to say, I take Uber/Grab 3-4 times weekly, taxi 1-2 times monthly.
1. I started with Uber, was a driver also, always loyal to them.
2. INcreasingly using Grab to support home-grown brands. I know now mostly out of Singapore, but well.
3. MyTeksi when I can’t get the above.
I think all services can work in tandem. No need to protest. Long time ago you need maps and road knowledge to be a taxi driver. Now with mobile apps, that barrier doesn’t exist. Maybe in future, the same with pilots. There’s no point holding on to the archaic concept of rigorous training needed to be a transporter.
at least the Uber service offers more to a passanger…beyond convenience…a cleaner car, faster service, easier paymt and a much2 more affordable fare. If u take a normal taxi from the Serdang Commuter Station (near the MInes) to Sg.Long, they will charge u RM20….that’s insane and that is in the afternoon. To SPAD and the Government…please consider us as the passenger as well. Please do a research in terms of customer satisfaction…the taxi has been here since forever but they have shown almost no improvement at all (I had many bad exoerience b4). Uber has been here what…2 years? But I experienced many good things. I believe the SPAD and Government can find better ways…it’s not just about helping the taxi drivers. If they wanna be the preffered choice among passengers…please IMPROVE!!!!!!
What exactly is fair, level playing field? Can uber drivers beat up taxi drivers for loss of income?