Uber, Grab should reduce driver service fee – Wahid

uber cash payment

App-based ridesharing services such as Uber and Grab could take a smaller cut to help drivers secure more income, said new Permodalan Nasional Bhd (PNB) chairman Tan Sri Abdul Wahid Omar, reported by Bernama.

“Uber takes about 25% (as service fee) from the drivers. They could do with less,” the ex-minister said, based on his experience as an Uber driver. After recently ending his tenure as senator and minister, Abdul Wahid drove for Uber for charity, and also to promote the new Proton Perdana.

“It is something I always wanted to experience. The use of technology and ridesharing. But I couldn’t do it while I was a minister,” he said at a talk titled “Transforming Nations Through Creativity and Innovation” held in conjuction with the 2016 International Conference on Blue Ocean Strategy yesterday.

Recalling his experience, Abdul Wahid said: “I drove about 11 hours and only did 17 trips netting RM210, of which RM10 went for toll charges, RM50 was taken by Uber (as service fee) and I was left with RM150.” He added that getting passengers by using technology and applications can help increase the income of ordinary taxi drivers.

Earlier this week, the Land Public Transport Commission (SPAD) outlined its plans to improve the Malaysian taxi industry. The Cabinet-approved Taxi Industry Transformation Programme (TITP) is geared to regulate e-hailing services (Uber/Grab), while providing existing taxis new opportunities to remain sustainable and competitive. Full story here.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • applegreen on Aug 18, 2016 at 3:48 pm

    Gov said they dont want uber/grab driver to pay tax but the uber/grab itself has to pay tax. That is why the service fee is going up from 10% to 25%

    Like or Dislike: Thumb up 2 Thumb down 4
    • Kunta Kinte on Aug 18, 2016 at 5:51 pm

      This ball licking ex minister should tell his Government should tx the rakyat less on cars sold. Don’t talk about Uber or Grab boss taking a lot of cut, what is this ex Minister doing to ask his ex boss Najib to honour his promise to reduce car prices by 30%?

      Like or Dislike: Thumb up 24 Thumb down 10
      • Talk is cheap. Try to say something like, “lower ur tariffs as we lower ur tax” and see

        Like or Dislike: Thumb up 3 Thumb down 3
      • George Abdul on Aug 18, 2016 at 6:55 pm

        Buddy, BN ministry only get useful when come to protek and making nonsense/ foolish/ unlogical statement like this !

        Like or Dislike: Thumb up 3 Thumb down 2
      • My boss is on the run from the FBI

        Like or Dislike: Thumb up 3 Thumb down 1
  • Middle Age Driver (Member) on Aug 18, 2016 at 3:57 pm

    Can always join the taxi group for more income now that its liberalized.

    Like or Dislike: Thumb up 2 Thumb down 0
  • 11 hours working & only get RM150? and that is before deduct petrol and other car maintenance factor.

    Like or Dislike: Thumb up 8 Thumb down 0
    • Anonymous on Aug 18, 2016 at 5:40 pm

      hmmmm.. yeah… earns RM150 a day for driving 11 hours at an average speed of 50kmh covers over 550km a day..?! With a modest consumption of 10litres per km… thats 55litres @ RM1.75 (RON95) equals RM96.25… thats a whopping RM53.75 gross profit per day.
      10 days of driving earns RM530 which by then u have to change your oil & filter… leaves u a bit under RM200 for the week. Thats a profit of RM20 per day. This is a rough estimation of course.. but u get the idea. Hey… Uber makes more money than u…! :P

      Like or Dislike: Thumb up 22 Thumb down 2
      • 4G63T DSM on Aug 18, 2016 at 6:14 pm

        There is something wrong with the numbers.

        How can one drive 11 hours in a Proton Perdana (which can be used as a UBER Black) and only make $210.

        I normally take Black and my rides are usually 30mins to 45 mins. And I pay $30-$40 not inclusive of tips for the driver.

        He must be working like the taxi drivers. Very Short trip and minum kopi under the tree most of the day waiting for customers.

        Like or Dislike: Thumb up 4 Thumb down 5
    • U forgot at the end of 11hr, need to spend Rm50 for urut belakang. Then need to reserve Rm50 per day incase got accidents. So only left Rm50.

      Now who says Uber was a gud thing?

      Like or Dislike: Thumb up 4 Thumb down 1
      • metertax ic on Aug 18, 2016 at 11:52 pm

        After two year u hate this job. After am4pat taun ur car always go to clinic workshop to see doktor mr bangla, pakistani and india and kedai ubat spare pat seng sei to buy minyak urut minyak pelicir gress bearing spring rubber wire glass mentol kipasfan moto aircod panas tongkat ali tayar bocor tayar haus. If u not lucky nombor 8881 u go hospital u kena selsema burong from tourist .darah tinggi kencing manis heart attack normal la cos u always drink diesel petrol alkohol road eksos dust by your nose.beware this ular polis spad jpj bomba cctv if accident happen u ride ambulan to hell wad u car rider truck tarik to bengkel ketok and spry cat.u no i no hospital olso snake.after 7seven year ur lazy come ,work only seveneleven morning. Kul 1 lunch kul 4 sleep unnder 3. After 10 year u must buy new car, ingat ya spad dont forget.

        Like or Dislike: Thumb up 1 Thumb down 1
  • a new app is coming, which is taking less profit, founded by the same fella who found (and sold) viber for $$$$$$, forgot d name but US drivers are SWITCHING to that thing ady

    Like or Dislike: Thumb up 0 Thumb down 0
  • Uber/Grab says stop komplen like taximen and dun be lazy, if wan more moneh just work 20hr/day lah. Otherwise u alls can drive taxi instead. Uber/Grab dun gip a F about drivers. If wanna drive must follow their rules, jangan persoal foreign overlords.

    Like or Dislike: Thumb up 10 Thumb down 9
  • Ben Yap on Aug 18, 2016 at 4:15 pm

    how i wish i can be chauffeur driven by a Tan Sri.

    i can tell everyone that my driver is a Tan Sri though I’m no PM or Agong.

    Like or Dislike: Thumb up 2 Thumb down 0
  • sohai on Aug 18, 2016 at 4:26 pm

    Ya, and the government could also tax us less on car too.
    That was what you could do while you were a minister.

    Like or Dislike: Thumb up 3 Thumb down 1
    • Then more car jam on the road? No way! Shud tax more and feed it to build more MRTs!

      Like or Dislike: Thumb up 18 Thumb down 3
      • Sammy on Aug 18, 2016 at 6:35 pm

        Cheaper tax could also mean better cars for us, not necessary more cars.

        And more tax for government also doesn’t mean more MRT. As it is, we pay high taxes for cars but our MRT is financed by issuing retail bonds, which your grandchildren could be paying for your MRT convenience now.

        Like or Dislike: Thumb up 5 Thumb down 2
        • We alredi have safer value for moneh car, but u still see MY pipu go for jepunis overlords deathtraps.
          So, nope. Making it cheaper doesnt mean we get better cars, it just means we will have more moving deathtraps on the road.

          Like or Dislike: Thumb up 5 Thumb down 2
  • Kenny Fang on Aug 18, 2016 at 8:22 pm

    It’s been said that Uber drivers’ earnings will eventually be in the negative due to car maintenance and consumables but it’s a way to get some cash for the short term.

    Like or Dislike: Thumb up 9 Thumb down 0
    • Yup you’re spot on. even now Uber drivers aren’t making much. i used to drive part time for uber when it was relatively new in Malaysia. Back then the incentives given were good and you could really make money. towards the end of last year they reduced incentives significantly and also reduce their fares. after doing the math, realized the profit made is almost negligible. some trips you’ll even make a loss. such as trips where you drive 5 mins to pick the passenger for a trip that cost RM 4 to RM 5. immediately stopped along with a few friends and sent our concerns to uber.
      In short, unless you’re planning to drive long hours a day with uber, don’t waste your time being a driver as it’s totally not worth it.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Andrekua on Aug 18, 2016 at 10:16 pm

    Hahaha… very funny comment from our beloved chairman.

    So did our beloved chairman propose to reduce his CEO salary so that they could maximize their work force salary?

    Like or Dislike: Thumb up 0 Thumb down 1
  • Megane on Aug 19, 2016 at 7:26 am

    11 hours of driving , 17 trips and only 10 ringgit toll . Really ?

    Like or Dislike: Thumb up 0 Thumb down 0
  • arteu32 on Aug 19, 2016 at 1:02 pm

    Government could take a smaller cut to help the people secure more income, said disgruntled malaysian

    Like or Dislike: Thumb up 0 Thumb down 0
 

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