Taxi groups say that the new “e-hailing” model needs to be properly regulated and implemented, or it will result in the death of the conventional taxi industry. The new model will legalise app-based ride sharing services like Uber and Grab.
In a report by The Sun, Big Blue Taxi founder and advisor Datuk Shamsubahrin Ismail said the proposed revamp of the taxi industry, which may begin by the end of 2016, could spell the start of the end for taxi permit holders in the country.
“My fear is that the taxi drivers will give up driving taxis and return the vehicles to us to become Uber drivers,” Shamsubahrin said. Apparently, since January 2016, nearly 80% of taxi drivers have returned their taxis back to the taxi companies due to Uber and Grab’s services.
“When the taxi drivers return the taxis to us (the company), the industry will collapse! Please remember we still need to service the bank loans and other costs,” he added.
Shamsubahrin also questioned the Land Public Transport Commission’s (SPAD) proposal for taxi companies to adopt a profit-sharing concept or guaranteed percentage of the day’s income for cabbies.
“I want to know how it will be done. Tell me how SPAD can do it? Because right now, for the Blue Taxi drivers, they need to get a minimum of RM350 per day and RM200 per day for budget taxi drivers for them to earn enough to cover the daily cost,” he said.
Meanwhile, Federal Territory and Selangor Taxi Operators Association president Datuk Aslah Abdullah agreed with Shamsubahrin’s standpoint that the “e-hailing” model could destroy conventional taxi companies.
“If that’s what’s been endorsed by the Prime Minister and the special economic committee, then we have to accept. We have to face the reality sooner or later whether we like it or not,” he said.
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AI-generated Summary ✨
The comments express strong support for regulating and modernizing the taxi industry, criticizing the current permit system as outdated and exploited by cronies who profit at drivers' expense. Many believe e-hailing apps like Uber and Grab offer better service, transparency, and competitiveness, challenging traditional taxi monopolies. Critics also highlight issues of poor service, bad attitude, and outdated vehicles from permit holders, blaming these factors for industry decline. There is concern over corruption, unfair regulations, and the need for taxi drivers to have individual permits to regain control and improve livelihoods. Several comments advocate for allowing drivers to own and operate their own vehicles independently, emphasizing that technological evolution and better service standards, rather than blame on new business models, will ensure industry improvement.