Taxi drivers returning vehicles amid stiff competition

Malaysia-Taxi-02

Taxi drivers are apparently returning their vehicles to their respective companies in huge numbers – as many as 10,000, in fact – according to a report by The Sun. The English language daily said that it had found some 200 taxis, mostly returned, at or around the building belonging to taxi operator New Supercab in Glenmarie.

Stiff competition from ride-hailing services such as Uber and GrabCar has seen an increase of returns, despite many taxi companies cutting their rates since May in a bid to encourage drivers to stay on. The downpayment for a lease has dropped from RM8,000 with a guarantor to under RM2,500 without a guarantor required, and daily rental rates have also been reduced from RM55 to RM40 for a Proton Persona.

“Most taxi operators and companies have reported a high number of vehicles being returned,” said Peninsular Bumiputra Taxi Operators Association (Perbumi) president Datuk Mohd Alias Abdul. “We are not talking about just old vehicles, but even new ones.”

Alias added that taxi driver incomes have dropped by as much as 40% since the introduction of apps like Uber and Grab. “Between 10% and 30% of the total number of taxis [35,000] in the Klang Valley have been returned to their operators in the past three to four weeks,” he said

uber cash payment

Ride-hauling services like Uber and GrabCar have reportedly seen a decrease in taxi driver income

He also said that there were several instances of repossessions due to several months of outstanding rental payments. “We have given [the drivers] a lot of leeway. Some of them have outstanding payments of five or six months although we gave them notices and warnings,” he added

Meanwhile, a spokesperson for New Supercab said that there has been a “huge” increase in returns and repossessions, particularly over the past few months. “I spoke to some of our drivers, and most of them said it was hard for them to cope with the competition from Uber and Grab, earning hardly enough income for themselves,” she said.

However, Big Blue Taxi Services founder Datuk Shamsubahrin Ismail said that his company hasn’t seen an increase of returns, as it operates premium taxi services instead of the budget taxis that are affected.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • 4G63T DSM on Oct 10, 2016 at 12:08 pm

    What the report doesnt say is how many of these drivers are now driving for grab and uber.

    When you drive a cab, you also drive with the stigma of a bad cabby… Irregardless if you are honest or not. You can thank your unscrupulous peers for that stigma.

    Well-loved. Like or Dislike: Thumb up 117 Thumb down 0
    • pak atan on Oct 10, 2016 at 2:15 pm

      Ada yg tukar bawak water taxi kat Sungai Klang…

      Water bisnes skrg manyak untung.

      Like or Dislike: Thumb up 10 Thumb down 3
      • Encik Kunta on Oct 10, 2016 at 3:20 pm

        This has to happen because our teksi drivers are lazy to the core. Half the time, instead of driving around looking for passengers, they are parked in a group under a tree and smoking and relaxing. This goes on for hours. All smoke, relax, minum the, talk about aweks and about chics for hours.

        No wonder you cannot make money.

        Then our teksi drivers get involved as accomplices of pimps. Every teksi driver tries to persuade male tourist and male Malaysians whether they want kongkek.

        They do this, cause they get commission from the brothels and spas and massage parlours. So, they will try their level best telling you about how many different girls they have of different races.

        Malaysia is now known as a sin capital of Asia because these cab drivers have been working hand in hand with the pimps.

        So, when you play with dark side, you kena makan lah. Now, you suffer lah for the sins you have done.

        Like or Dislike: Thumb up 56 Thumb down 9
      • Encik Kunta on Oct 10, 2016 at 3:40 pm

        Now teksi drivers are paying for their sins. This what happens when you fetch a Mat Salleh visiting Malaysia in KL Sentral and charge him RM300 to go to KLCC during non peak hours.

        Not one Mat Salleh kena. Not two. But hundreds of Mat Salleh kena.

        What you do to others

        Like or Dislike: Thumb up 43 Thumb down 1
        • dingle on Oct 11, 2016 at 7:54 am

          I’ve been in this situation too. I hailed a cab in Bukit Bintang and asked the driver to send me to KL Sentral. I spoke in English (maybe with a foreign accent, not so sure how I sound) and was carrying a luggage, heading for KLIA. The guy must have though that I am not a Malaysian. He immediately told me “Boss, 150 ringgit Malaysia”. I just closed the cab door and stopped another one after that. This time I spoke in Malay but was still quoted a fixed price without using the meter.

          Like or Dislike: Thumb up 9 Thumb down 0
    • Proud to be Malaysian on Oct 10, 2016 at 2:17 pm

      Rm40 / day. Total cost rm1200/ month for rent only. taxi drivers could get better and comfortable car rather than old saga, or old persona with that amount. Taxi companies need to think about this. 1st impression is important. Especially to tourists where this is their targeted market. 1200/month for the old saga (just for example) come on, Rather than pity for passengers, pay attention to the driver first.

      Like or Dislike: Thumb up 36 Thumb down 2
      • Buying a car is affordable. Can buy SV from proton. But the permit is another thing..need to pay commission to a “permit master”

        Like or Dislike: Thumb up 17 Thumb down 0
      • Encik Kunta on Oct 10, 2016 at 3:48 pm

        Hello teksi drivers, your own Government just played you out lah. Remember the days when the teksi drivers threatened that they won’t vote for BN if they did not get their way?

        Well Khazanah and another GLC has invested heavily in Uber. You think they are bothered about your poor losers?

        Like or Dislike: Thumb up 33 Thumb down 1
        • N kata dia tak kesah cuz he only listens to rakyat, not old man’s kronis

          Like or Dislike: Thumb up 13 Thumb down 1
    • Blue Cab on Oct 10, 2016 at 2:26 pm

      Nobody driver is going to rent taxi from cronies already

      Like or Dislike: Thumb up 16 Thumb down 0
  • Abang Alza Pakai Topi on Oct 10, 2016 at 12:11 pm

    This is 2016. Proton Iswara 1992 dah mesti dibuang semua.

    Well-loved. Like or Dislike: Thumb up 63 Thumb down 1
  • Taxi Taxi ! on Oct 10, 2016 at 12:12 pm

    If you cannot stand the heat, you should get out of the kitchen ! That is the Real World scenario, don’t always asking for govt. help just to survive in the business world. All the driver should instead join Uber/Grab !

    Well-loved. Like or Dislike: Thumb up 55 Thumb down 4
    • azzrieGrab the Uber on Oct 10, 2016 at 1:06 pm

      No.I disagree. It give bad name to uber/grab because their attitude still the same.

      Like or Dislike: Thumb up 24 Thumb down 0
      • dingle on Oct 11, 2016 at 7:56 am

        They will have to change once they understand the concept of comment and rating on the app. Also, when they see cleaner profits, they’ll be happier.

        Like or Dislike: Thumb up 2 Thumb down 0
    • Bernard on Oct 11, 2016 at 12:34 am

      We don’t want the taxi drivers to join uber/grab!!!

      Like or Dislike: Thumb up 5 Thumb down 0
  • Rates galore on Oct 10, 2016 at 12:14 pm

    One of the reasons people have been shifting to Uber is because of the exhorbitant rates charged by the taxis, especially after the previous rate hike. It’s a no-brainer for anyone to choose a cheaper option when it is available. The question now is will the government lower the taxi rates to keep them competitive, or just legalise Uber which would be much simpler and cleaner.

    Like or Dislike: Thumb up 32 Thumb down 2
    • waters on Oct 10, 2016 at 12:39 pm

      Rates are one thing, but the main issue with the cabs is availability. No cabs when you call, no cabs want to take you where you want to go, no cabs when you hail them, etc.
      If you need to rely on a cab to take you to work or an LRT station from your house EVERYDAY in the morning, you couldn’t do it. Now with Uber/Grab, you can.

      Well-loved. Like or Dislike: Thumb up 68 Thumb down 1
    • Grab the Uber on Oct 10, 2016 at 1:04 pm

      Just look the interior condition of 3-4 years old cab.Very bad.Their white shirt is worst than standard 1 students.

      Like or Dislike: Thumb up 17 Thumb down 0
  • browser on Oct 10, 2016 at 1:05 pm

    Datuk Shamsubahrin Ismail, the consultant who was convicted with NFC case and supposed to serve jail terms?

    Like or Dislike: Thumb up 18 Thumb down 0
  • FIST (Member) on Oct 10, 2016 at 1:13 pm

    Good, kasi bankrupt these blood sucking leasing companies

    Like or Dislike: Thumb up 31 Thumb down 0
  • frossonice on Oct 10, 2016 at 1:17 pm

    Uber/Grab were succesful here because the rotten taxi service in the first place. People were tired with taxi operators/drivers and their taxi condition that Uber/Grab existance is really a blessing for most people.

    Taxi operators need only themselves to blame.

    Like or Dislike: Thumb up 19 Thumb down 0
  • Most of the taxi drivers like samseng, they thought the road belong to them, driving in the middle of the lane, making turns like no one else is using…. road bullies…

    Like or Dislike: Thumb up 15 Thumb down 0
  • say_no_to_taxi on Oct 10, 2016 at 1:34 pm

    it is time taxi company really gather its big shots to sit down and plan to have a reform plan..

    Like or Dislike: Thumb up 1 Thumb down 3
  • Ben Yap on Oct 10, 2016 at 1:47 pm

    when uber and grab dominates the industry, the drivers will start to behave like taxi drivers.

    Like or Dislike: Thumb up 10 Thumb down 4
  • Jonathan Siew on Oct 10, 2016 at 2:00 pm

    times have changed. either you changed with the times or you will be changed. same goes for our “pajak rental system”

    Like or Dislike: Thumb up 6 Thumb down 0
  • Henry on Oct 10, 2016 at 2:01 pm

    The days of rent seeking will end soon. Those drivers are finally free from slaving for their feudal lords. Go forth and seek greener pastures.

    Like or Dislike: Thumb up 15 Thumb down 0
  • Anonymous on Oct 10, 2016 at 2:12 pm

    Not only that, a lot of time, even with taxis available, we find the driver choosy on passengers.

    They refuse to fetch their passengers to their designated destination. They only want to go with longer distance and no jam destinations.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Vincent on Oct 10, 2016 at 2:17 pm

    This is a very positive sign. It been more than 20 years since Dr M time, which they give permit to “Company” and the real taxi driver has to pay the permit! At least now, with the legalized Uber by Najib administration, this shall be credited to Najib.

    Like or Dislike: Thumb up 18 Thumb down 5
  • John is otak batu on Oct 10, 2016 at 2:20 pm

    Taxis are purchased tax free, right? As much as I support uber, I hate for this to happen. But not to umno cronies who hold so many permits like syed Hamid albar’s wife

    Like or Dislike: Thumb up 7 Thumb down 2
  • Vincent on Oct 10, 2016 at 2:21 pm

    From this Taxi issues… it showed a very bad attitude of certain “People”. They some how feel that protection and special rights for them is their born rights! They only blaming people who is competitive and wanted government to stop those good competitor, instead of improve themselves to be better and win back their customer!

    Again…. this is the results of New Economic Policy initial by Dr Tun M.

    Like or Dislike: Thumb up 7 Thumb down 1
  • DonkeyKong on Oct 10, 2016 at 2:44 pm

    Let those blood-sucking taxi companies die. They’re just profiteering crony companies anyway, with no real merits to operate taxi services. The next step, they should allow Grab and Uber to operate from airports as well, because the airport taxis & limos are another source of mediocre service.

    Like or Dislike: Thumb up 19 Thumb down 0
  • Philip on Oct 10, 2016 at 3:39 pm

    Most recent incidents. From Bukit Bintang to KWC. Time 12.45pm.
    Approached taxi drivers. Requested rm15. Ok. No prob. Then drivers told me Lunch Time. Very Jam. Can wait 1hour when not jam. What the…… if I could wait I would not have asked for a taxi. I’m willing to pay you the fare as per your request but you still think of your own convenience.
    Used Uber. Arrived in 8 minutes. Picked me up and reach KWC in 6 minutes. Fare? Rm4.60.
    So….which would you prefer?

    Like or Dislike: Thumb up 40 Thumb down 1
  • Therealmaserati on Oct 10, 2016 at 3:50 pm

    1200 a mth u can buy a Myvi and pay 600 mthly installment. U can then do uber or GC. Make double or triple what u earn as a taxi driver.

    Doesnt make sense to be a Taxi driver anymore. Uber rocks!

    Like or Dislike: Thumb up 21 Thumb down 1
  • Simon Ambrose on Oct 10, 2016 at 4:36 pm

    These taxi drivers make so much noise about this uber and grab. REDUCE THE GODDAMN PRICES LA. Overcharge only from Aquaria to Twin towers RM8. WTF?

    Like or Dislike: Thumb up 10 Thumb down 0
  • Harris Murad on Oct 10, 2016 at 5:20 pm

    And i can foresee another problem now; these ex (sucky) cabbies joining uber/grab and bringing their attitude to the team.
    Took a few uber/grab rides recently and you can easily tell that they were once these (sucky) cab drivers.

    Rude, dirty cars inside out, trying to extort customers with the small change etc. Bloody idiots

    Like or Dislike: Thumb up 12 Thumb down 1
    • crash on Oct 10, 2016 at 6:16 pm

      Agree. Therefore we the consumers can rate them poorly for Uber . After too many poor ratings, they will be banished.

      Like or Dislike: Thumb up 15 Thumb down 0
  • Well I would choose Grab over a taxi anytime. The attitude of some of the taxi drivers is just horrible. I took a cab recently from the LRT station back to my house and its quite a short distance and the taxi driver was grumbling all the way back to my house. Why should I be listening to your complaints when I am paying for the service. Whether it is near or far does not matter.

    Like or Dislike: Thumb up 8 Thumb down 0
  • It is good that these taxi drivers quit driving taxi. Go work for Rapid KL better . Just go take E license . Rapid is desperate for bus drivers . They have too many buses but not enough drivers. Being a bus driver is not vulnerable to retrenchment due to poor economy. There is always tonnes of demand for bus drivers. Problem now is, these taxi drivers are lazy. They love to park their car under a shady tree, put their feet on their dashboard and take their afternoon nap when they should be hunting for customers. Buses have GPS tracker, you cant do that anymore.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Mikey on Oct 10, 2016 at 6:30 pm

    Beware secondhand buyers bcos there will be plenty of Persona/Saga for sale due to return of vehicles by taxi drivers. The mileages can be rigged. Check B4 buying.

    Like or Dislike: Thumb up 5 Thumb down 0
  • tagapagbalita on Oct 10, 2016 at 6:34 pm

    It’s a “put up or shut up” kind of setup. At the end of the day, people would go where they get their moneys worth. Uber and Grab are thriving simply because their service is better compared to the taxis.

    Let’s make the taxis in klcc area as example. At night minimum is always 20RM just to get to klcc to bukit bintang. Taxis rip off the passengers especially tourists. Where did honest labor have gone these days?

    Let’s say taxi and grab has the same rate. What would you choose? A dilapidated Persona or a well taken cared of Myvi?

    At the end of the day, people would always go for the services where they get the value for their money.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Bernard on Oct 10, 2016 at 11:39 pm

    Excellent news:) uber and grab pls do not hire them.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Hmm... Much Hmm... on Oct 11, 2016 at 6:10 am

    A song came to my mind while reading this article;

    The Rolling Stones – Sympathy For The Devil

    Like or Dislike: Thumb up 1 Thumb down 0
  • I’m curious what extra costs incurred by cabbies compared to Grab / Uber drivers.

    1. Daily rental to taxi companies
    2. PSV license
    3. Insurance (maybe higher than private passenger vehicles)
    4. Puspakom inspection (every 6 months)
    5. Road tax
    6. Kopi money

    VS

    1. Monthly installment
    2. None
    3. Insurance (maybe cheaper)
    4. None
    5. Road tax
    6. None

    The PSV license is not difficult to pass and only expensive for 1 time. Yearly renewal inexpensive. Medical also inexpensive. Most doctors will charge between RM 20-30 for basic medical examination enough to qualify for PSV / GDL renewal.

    And this is an open secret. Many actually paid their way to obtain PSV or GDL via runners or insiders. This is what a runner told me when applying for GDL many years ago. Only need to score 42 out of 50 questions right.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Yokohama24 on Oct 11, 2016 at 8:25 am

    karma has strike for these thugs

    Like or Dislike: Thumb up 1 Thumb down 0
 

Add a comment

required

required