Taxi companies to work with Uber to “save industry”

Taxi companies to work with Uber to “save industry”

In what could be perceived as a total U-turn, taxi companies are looking to work with ride-sharing app Uber in an effort to “save the taxi industry.” A report by The Sun states that the companies will sign a memorandum of understanding with Uber Malaysia as soon as this week, a sea change from recent years when both taxi drivers and companies alike railed against the maker of the app.

A pilot stage beginning next month will see around 500 taxi drivers across Peninsular Malaysia from at least six companies using the app to get passengers. The taxi companies are said to be finalising discussions with Uber, since the latter predominantly deals with credit and debit card transactions.

“We will continue to operate as metered cab operators,” said a taxi operation manager.? “But if a taxi driver decides to take bookings via Uber, then the cabbie has to follow the fare rate set by Uber, whether it is lower or higher than the current regulated fare by SPAD.”

The report also notes that the deduction of fare income through the use of the app will only be conducted between the taxi driver and Uber, although it remains to be seen if that deduction will remain at 25%, the same as regular drivers using private vehicles. “We have to move fast since e-hailing will be regulated soon after the law amendment in Parliament this month,” said another taxi company managing director.

Taxi companies to work with Uber to “save industry”

When asked why the companies chose to collaborate with the San Francisco-based startup instead of local services like Grab (which started off as the taxi-hailing app MyTeksi), a director of a leading taxi company said, “The public are more aware with the Uber branding. We have also been using local apps [for bookings] but we are not getting much traction due to lack of marketing.”

Taxi drivers and companies have been outspoken regarding the rise of ride-sharing services like Uber and Grab since 2015, having organised multiple protests – including one which blocked Jalan Bukit Bintang. There have also been reports of drivers suing the app makers, as well as harassing their drivers.

All these have not dampened the popularity of these services, however, with The Sun reporting last October that around 10,000 taxi drivers have returned their vehicles to their respective companies due to stiff competition from Uber and Grab. It is said that many taxi companies may not survive beyond 2018, and have since told the publication that “instead of continuous war against Uber, it is time to embrace the ‘enemy.'”

The aforementioned director said that taxi companies have little choice but to use Uber in response to market demands, which The Sun noted was a clear sign that the industry was conceding defeat to the growing popularity of ride-sharing services.

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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

  • How bout no?

    Like or Dislike: Thumb up 17 Thumb down 2
  • Andrekua on Mar 06, 2017 at 6:28 pm

    Let’s wait for report that Uber drivers won’t use the metered app. LoL

    Like or Dislike: Thumb up 20 Thumb down 0
  • Donald Dedak on Mar 06, 2017 at 6:40 pm

    What happened to all the road blocks and threats?

    What happened to all the KL working crowd who took 5 hours to reach home with all the threats and road blocks?

    Were there any arrest by PDRM for the roadblocks caused National Security issues?

    What happened to the ambulances carrying heart attack patients who could not reach hospital in time due to the jams and road blocks caused by the teksi gangsters?

    Who is going to compensate the family of people who died in ambulances because of the road blocks and gangsterism?

    And how is this working with UBER going to clear the image of Malaysian teksi drivers being the No 1 Worst in the world?

    Like or Dislike: Thumb up 34 Thumb down 3
    • Tajol on Mar 07, 2017 at 2:49 pm

      Kerajaan akan memperbanyakkan Teksi 1Malaysia (TEKS1M) berasaskan model Proton untuk menggantikan teksi bersaiz kecil sekarang.
      Ini dapat mempastikan perkhidmatan yang lebih baik dan setaraf dengan perkhidmatan teksi di negara maju.

      Like or Dislike: Thumb up 3 Thumb down 6
  • Carbon on Mar 06, 2017 at 7:14 pm

    If I get a taxi as uber, I will cancel the ride. Simply because their bad behavior.

    Well-loved. Like or Dislike: Thumb up 68 Thumb down 0
    • kzm (Member) on Mar 07, 2017 at 12:03 pm

      n do you think those taxi driver will not join uber/grab later if taxi industry collapse?

      Like or Dislike: Thumb up 2 Thumb down 2
  • Frogface bluecab on Mar 06, 2017 at 7:34 pm

    Would be interesting if bluecab frogface starts begging to join the alliance

    Like or Dislike: Thumb up 22 Thumb down 0
  • Albert on Mar 06, 2017 at 7:35 pm

    Let there be only Uber and Grabcar.We are happy.
    Remember,NEVER REWARD MEDIOCRITY.
    Never compromise.
    Stand tall.

    Like or Dislike: Thumb up 39 Thumb down 2
  • WT Fuchhh on Mar 06, 2017 at 7:40 pm

    Before JV with Uber, must lah Ubah yourself. Who wants to get ride from, 20year Saga, with gangster drivers.

    Like or Dislike: Thumb up 28 Thumb down 0
  • When u cant beat them,….

    Like or Dislike: Thumb up 5 Thumb down 0
  • Sgt Scoop on Mar 06, 2017 at 7:45 pm

    There is no future in the taxi industry. Within 5 years autonomous taxis will rule the market. Uber and Grab drivers had better start making plans too.

    Like or Dislike: Thumb up 9 Thumb down 1
  • Heskey on Mar 06, 2017 at 7:56 pm

    I will not use uber anymore since they employ taxi drivers. I choose uber because of certain standards.

    Like or Dislike: Thumb up 19 Thumb down 0
  • Bernard on Mar 06, 2017 at 8:00 pm

    Uber pls think deeply and wisely before you embark on this!

    Like or Dislike: Thumb up 20 Thumb down 0
  • Shamsubahrin on Mar 06, 2017 at 8:30 pm

    Jom Uber! Jom Ubah!!

    Like or Dislike: Thumb up 1 Thumb down 3
  • Limbo on Mar 06, 2017 at 8:34 pm

    If my next Uber ride turn out to be a regular taxi, will just cancel my booking.
    Those run down vehicles and driver attitudes deserve no sympathy.

    Like or Dislike: Thumb up 28 Thumb down 1
    • kzm (Member) on Mar 07, 2017 at 12:06 pm

      what if those taxi driver use their own car? can u differentiate?

      Like or Dislike: Thumb up 0 Thumb down 5
      • Ah Kow on Mar 07, 2017 at 3:29 pm

        Cannot, but after I get into the car then probably can. Anyway I am able to complain if he/she is acting like a thug taxi driver.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Hahaha… them taxi clowns. Uber exist for a reason and that is because you are lousy.

    Like or Dislike: Thumb up 9 Thumb down 0
  • So they want UberTAXI like they do in the US?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Actman on Mar 07, 2017 at 2:02 am

    “Save Industry” or “SAVING YOUR POCKET?” There was a huge difference between!

    Like or Dislike: Thumb up 13 Thumb down 0
  • Rooney on Mar 07, 2017 at 8:18 am

    In big cities, there’s an option to choose taxi on Uber.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ah Kow on Mar 07, 2017 at 9:13 am

    This could happen much earlier and you taxi drivers could be earning money via UBER GRAB since last year but you all chose to “throw eggs” at UBER GRAB.

    Now dah insaf ke?

    Like or Dislike: Thumb up 8 Thumb down 0
  • Ah Kow on Mar 07, 2017 at 9:44 am

    If the they really manage to work together. Good luck to UBER customer service department. There will be lots of complains lodge against the “gangster” attitude taxi drivers.

    Probably after a month or two, UBER is able to filter/sack! out all the gangster taxi and keep the good ones in service for the public :)

    All the best

    Like or Dislike: Thumb up 5 Thumb down 0
  • Tuger88 on Mar 07, 2017 at 10:11 am

    Where is scary bota now ,a representative of taxi driver association .

    Like or Dislike: Thumb up 2 Thumb down 0
  • Not Toyota Fan on Mar 07, 2017 at 11:03 am

    Uber, your company reputation will be damaged by these hooligans disguised as taxi drivers. They will sabotage your company from within, so that they can go back to the “good old days” of taxis being king. Please update your app to show if driver is taxi or otherwise and allow consumers to choose if they want a taxi or not.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Ben Yap on Mar 07, 2017 at 11:19 am

    with so many taxi drivers onboard with uber, the current uber drivers will suffer stiff competition.

    those drivers that started driving when Uber was first in Malaysia ripped the most benefits.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Nasi Lemak 2.0 on Mar 07, 2017 at 11:55 am

    Jz closed down malaysia taxi’s.. we need uber is more than enuff

    Like or Dislike: Thumb up 1 Thumb down 0
  • C. P. MOHAN on Mar 07, 2017 at 12:34 pm

    Irrespective who comes, to me it is ‘service is the NAME efficiency and cleanliness is the GAME’. Bottom line is who cares if the service provided is good.

    Like or Dislike: Thumb up 0 Thumb down 0
  • sohai on Mar 07, 2017 at 3:46 pm

    that’s right. taxi companies should work with uber to improve the service level of the industry… and the industry shall be saved…

    Like or Dislike: Thumb up 0 Thumb down 0
  • lovehuman on Mar 08, 2017 at 10:38 am

    I would say if taxi industry falls, there also innocent drivers in there. If they join force with UBER, they can’t bring their taxi attitude into UBER. If they do then they have to regret at the end. Everybody want to make money or survive. I’m just saying as a human race.

    Like or Dislike: Thumb up 0 Thumb down 0
  • The current taxi industry doesn’t need to merge with Uber in order to save themselves. They just need to change their current attitude and stop cheating their customers.

    Like or Dislike: Thumb up 0 Thumb down 0
  • si rashid on Mar 10, 2017 at 5:16 pm

    let the taxi drivers join Uber.
    if they bring along their attitude in Uber, passengers will give low rating to them, which will cause Uber to ban them to become driver (rating below 4.6 out of 5 stars)

    Like or Dislike: Thumb up 0 Thumb down 0
 

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