Drivers for ride hailing or e-hailing services such as Grab will have to comply with a raft of new rules set by the government to ensure a level playing field between the e-hailing and conventional taxi industries. The new regulations were announced by transport minister Anthony Loke yesterday, reported by The Sun.
The new requirements include the Public Service Vehicle (PSV) license, which costs RM115 a year, and annual vehicle inspections at Puspakom. However, all stakeholders will be given a one-year moratorium from the gazetting of the procedures today, before full implementation starts next year.
“E-hailing services will be regulated by the government beginning July 12 through the Land Public Transport (Amendment) Act 2017 and the Commercial Vehicle Licensing Board (Amendment) Act 2017. With this, e-hailing companies must register themselves with the Land Public Transport Commission (SPAD) and will be required to pay a fee,” Loke told the press.
He added that e-hailing drivers must attend a RM200, six-hour course at designated driving institutions to obtain their PSV license, and that they would also have to pass criminal record and medical checks. To make things fair, taxis will also have to go for annual inspections (twice a year currently), and the same RM200 six-hour course for a driver’s card will also apply.
Also, e-hailing cars need to have a minimum three-star ASEAN NCAP rating (most local cars are four stars and above), and cars over three years old must be inspected at Puspakom for a RM55 fee.
Other new regulations include the requirement for passengers to upload their IC (for driver security) and insurance for the car, drivers, passengers and third parties. E-hailing companies are required to prepare a driver’s guideline and register with the Companies Commission of Malaysia and Cooperative Commission of Malaysia. An SOS/999 emergency function in the app is also a must.
The government is also now regulating commissions (the amount kept by the e-hailing companies) and fares (charged to the consumer). Loke announced a maximum commission of 20%, or maximum 10% for taxis using e-hailing apps. Apparently, commissions can go up to 25% at present. For riders, surcharges cannot be higher than two times the original fare.
Loke said that Grab will be investigated for possible monopoly, after buying out Uber’s business in the region. “The government is currently reviewing a possible e-hailing service monopoly and we are working together with the Malaysia Competition Commission (MyCC). We don’t want any services to be involved in monopoly. And if we find any elements of it, we will take action on them,” he said, adding that SPAD has received complaints on raised fares after the merger.
Sounds like the government is coming down quite hard on Grab and its imitators, with the investigation and new regulations. Asked for a response, Loke stood firm. “Of course they won’t be happy, but we come up with the regulations and they have to abide by it. If they think it’s not profitable, then they can leave the industry,” he said. Yes sir!
… then now we are talking. Good move..
Grab is already far more expensive than Uber. Now with all these charges, it will eventually pass on to the consumer. Pity the consumer now, we will soon be paying hefty charges.
Better for Government to concentrate on improving public transport too. Look at LRT3…..suddenly, without dedak, the price has come to RM15.5 billion cheaper.
OMG OMG OMG. With the money we save, we can even do LRT4.
Lucky we have a clean Government now!
But LRT 3 project extend from 2020 to 2024 to completed. Pipu will continued suffer with traffic jammed.
Thanks to Ah Loke, now we enjoy Higher Grab Fee. So, don’t use Grablah, use taxi. Brother, Taxi is more expensive. No choice have to use Grab even though at higher price. Thank you Ah Loke
Ah Loke did this but why didnt enforce safety feature for Driver?, passenger stupid names like apple apple and stinky bangla still riding Grab
#AhJoke not #AhLoke
Spot on Loki. Previous affirmative teksi policy only highlighted our dire infirmities now.
Let’s not get into legislative diarrhoea here! You cannot insist on my ID to be uploaded into a commercial app. It’s a violation of my privacy. Only my government and police have the right to verify my identity, as far as I know. Maybe a link to JPN is in order. Everything online is subject to some kind of hacking or data theft. As a passenger, I believe what’s more important is to be protected from price gouging, through the free market. Encourage local competition. Inconceivable that local taxi companies cannot develop their own apps! After all grab grew out of MyTeksi, didn’t it? Correct me if I’m wrong.
Uploading rider ID is to provide driver safety, the necessity can be seen in the recent case of a Grab driver murdered in Selayang. Drivers are already required to upload their ID when registering with Grab, to provide for rider safety. If you cannot accept this, you are free to not use e-hailing and revert to flagging for taxis at roadsides.
Your ID detail should not be displayed. Same goes to the driver. They submitted their ID, license and insurance information for Grab to run the security check with authorities. The same regulation should be the same with the riders.
As I heard, Singapore is also investigating the monopoly of Grab and Uber acquisition of it’s shares. So the concern is consistent in this region.
Very good and fair to all parties. Even lower commission for Grab. Yeah.
Lower commission to grab will make them increase price to recover the 5% loses because their pricing is not regulated like Taxis. Grab pricing is dynamic & based on demand & supply. Better start looking at other E-hailing operators like mula, mycar & etc
Now this is call level playing field.
Anthony Loke tell Anthony Tan how to do it legally. But till this morning Anthony Tan said he doesn’t know anything.
Thank you PH minister……thank you to all voters who chose him……Now all Grabbers have no choice to stop grab taxi by next year and stop our rice bowl….we have bills to pay too…Next election …u r going down….for sure
Why? Free lunch gone unhappy ah.
Or You buy Mercedes no money to pay need to be Grab driver to pay installment issit?
Get a proper job.
YOU ARE TELLING ME GRAB DRIVER IS NOT A PROPER JOB?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? IS THIS THE MENTALITY OF NEW MALAYSIAN?
Good than will choose to use Grab againgood Point
1.7 million Britons work at gig jobs in 2017. R u saying they not working a real job? But its becoz of gig jobs that their unemployment rate is lowest in EU and Brit economy is booming compared to rest of EU.
Time for u to get of ur high horse and see how gig jobs helps the economy.
What if the grab driver is a 65 yrs old dude who is earning a side income to supplement his family? Get a proper job or ask him to enjoy his golden years..? Or did you think that all drivers are young fellows with nothing better to do..?
Even how expensive is Grab ride its still cheaper than taxi who don’t usualy go to your door steps to pick you up, We will see what are the local taxi’s next tricks and what they can offer. Next year grab drivers will have to find some other source of part time income…. We rakyat have all the power ……..to demand change again if we want
Change is an illusion. U voted to muzzle Grab competitiveness, not making taxis better.
this makes driving for e-hailing app is so not attractive.
Things just gets more and more expensive in New Malaysia.
What i can see, in future this e hailing will hassle for both driver n rider, n ph government does not bother about ehailing services companies or care less. The winner will be the taxis drivers, maybe taxi drivers can earn a lot again. One thing to differentiate between the taxi n ehailing is rating system. Drivers have to be good in order to get stars. Most drivers will try their best to complete rider’s trips. And e hailing companies will rewards drivers with high rating. Taxis dont have this system . And they can become whatever they want. At the end, passengers at the losing side. Quite arrogant statement from transport minister. The should study more comprehensive about this issue before making drastic decision. Just my 2 cents.
Since coming in, Loki has been making drastic decisions without proper study. Its just natural he continues this trend.
Good than will choose to use Grab again
No matter how you look at it, all extra cost incurred will be eventually pass to the consumer. Consumers should thanks Loki for making it happen.
unfair comision for grab drivers compair taxi grab driver instead taxi two option to run as taxi and taxi grab
Grab drivers got bonus but taxi grab driver don’t have
Taxi driver got “batuan/gula-gula” from government. Grab driver dont
hye. i think taxi and grab should be have their own apps to run their bussiness. Make grab conpany easier to monitor their own drivers. thanks
PH Government should focus on how to lower the OLD taxi fare ….maybe eliminate unnecessary charges to taxis…so that rakyat can enjoy cheaper fares …so that old taxi can be competetive too so no question about monopoly on fare coz old taxi price and grab price almost similar. PH government shouldnt press ehailing bcoz it s cheaper fare….this is unfare to all grab drivers who depend on this job.
Its should be kess regulations. Not more for both e hailing and registered taxis. No need for puspakom inspection if taxis had their cars serviced at authorised service centres of car manufacturers. All tgese unnecessary rule will only add up and cause more hardship to drivers and increase in fares.
What about grab drivers what crime does they committed???please anyone????
What about grab driver??? what wrong does grab drivers did???As long as i know once a upon a time in 1 or 2 years back if i nvr remember wrong most of the people are saying grab are good,best,cheap and drivers honest lost handphone return back to owner la now ppl are saying upside down changing topic la…come on!!!Sir/madam!!!!
How is it safer now with taxi? Do I need to scan my IC when taking taxi now? The app phone number validation is already a step safer than current approach. The only way to benefit consumers or rakyat is open market. Let GoJek come in, lets everyone comes in. Competition is good for consumers.
Let the market forces decides, i.e let people have access to natural healthy food without coloring and flavoring by allowing open markets and competition. Let people have biodegradable bags instead of banning plastic bags. We are no where near European countries but we want to ban plastic bags. Now i need to buy garbage plastic bags and carrying bags. Isnt this more waste both my money and environment? Even spore cant afford to ban plastics bag..cos they are smart. Sorry i am going everywhere but I just want to point out.. do only what is best for the masses. Not for some groups or associations. The majority of rakyat should be the priority.
Not all rules are bad like inspection, etc. But some rules are just non sensical. Please ensure diesel trucks are not emitting black smoke like crazy. That should be the priority.
Dont forget how horrible the taxi service are. Dont tell me there werent crimes committed in the taxi industry. It is probably much worse that ehailing. Dont forget how taxi drivers were asking for exorbitant fees…not taking the job. if the taxis are good, then ehailing probably wont survive naturally.
Having said all these, the new government is definitely better in a lot of ways. And proud of malaysians of all races. We have come a long way.. hopefully we will get two terms limit for all ministers rule in place.
Remember the government is here to make the best decisions for the rakyat. Open competition is the only way good for you and me.
Im an engineer….due to most project been stop and review…now the opportunity is gone..more people become jobless now…thinking of doing grab..now goverment said if the grab think not profitable can leave the industry..what job can i do..how im going to pay the car loan..find money to eat…beware with action and words to people…we can down Najib…we also can down any of you..the power is on rakyat..start to work now…control the cost of living that getting higher…show the procedure that can control as what you ask grab this and that…look at wet market…all foreigner control…dirty…smelly…expensive…why you punish own citizen of own country….goverment officer easyly can be paid…when gonna reduce and stop? Already get sick with previous PM…if wanna follow his style..see what happen to him now…think,get opinion from all,analyse then take action…
“If u dun like it, u can keluar” is no longer taboo kah?
“Gov says, others must follow diam diam” is no longer taboo kah?
Previous PM wanna empower Grab/Uber drivers and kleptoPM wanna muzzle them again, but ini salahan previous PM kah?
What engineer logic is this?
Wow, “Of course they won’t be happy, but we come up with the regulations and they have to abide by it. If they think it’s not profitable, then they can leave the industry,”
This sentences comes out from new minister mouth ??? It does sound familiar with the old gov sentences.
“Ayam mahal , jangan makan ayam” ???
With grab , some uni student and aunty housewife can make some extra money on their own.
With grab , they provide better service than taxi to alot of tourists.
Now because of you. GG already …
Fine line between consumer protection and making a living . As consumer I rather have protection than feel bad , any industry has it’s rules and regulations , down to the simple chinaman sundry shop.
The extra cost of psv license, course, inspection fee coupled with limitation of commissions, among other things, will eventually lead the cost to be transferred to riders, hence more expensive rides.
The e-hailing service should be allowed to grow based on supply and demand where innovation and service is of utmost importance. Taxi operators should change the way they operate and catch up with the trend or be left out, or ‘leave the industry if they think it’s not profitable’.
Regulating e-hailing for the safety of both drivers and riders (such as ID registration of riders) is understandable, however overzealous regulating with the intention of creating a so-called fair level field between e-hailing and taxis services is just another ‘protection’ policy towards certain industry and bears no additional value for the riders.
This is a new government and we are all mature rakyat. You’re right Loke, we don’t want monopoly but we do not want the government to dictate what’s best for us either. Let the e-hailing and taxi services innovate and wow us with their offerings and we will decide who gets our hard earned cash at the end of the day.
Tahniah to Grab drivers who voted for the “New Malaysia”!
All of them now crying and regretted their decision. Sigh.
No problem in abiding with the new regulations.
Kudos for the intended insurance coverage for all and the license. Making it mandatory for all riders or passengers to download their photos, IDs, using real names etc in the apps are very much welcomed and by doing so both drivers and riders are now equally transparent with their identities. Additional security precaution, for any rides, riders or passengers who booked the trip must be available or accompany his friends, siblings,
colleagues for the booked trips. There are instances whereby, the trips are booked by ladies but instead men went for the trips driven by Lady Grabbers at nights. Tq.
Imposing a maximum commission of 20% for all Grab Drivers is very much welcomed. At present some are charged 20% and some 25%. How would one explain if both sets of drivers are equally competent with the same star ratings of 4.80 or 4.90 driving along the same route with same fuel costs for a trip fare of RM20, when their jobs completed, one would earn RM 16.00 and the other would earn RM15.00. Please create same level playing fields. Tq.
‘Of course they won’t be happy, but we come up with the regulations and they have to abide by it. If they think it’s not profitable, then they can leave the industry’ As a minister, you shouldn’t say things like this. Think of this point of view, why did Grab and Uber exits in the beginning. And why taxis business has gone down? Reason being is, taxis driver are rude to their customers, it’s mainly because they think they are the king that point of time where Grab and Uber are not introduced, so people have no choice but to take taxi, and they charged higher prize to customers by taking longer route, and drive at a very slow speed. Such not professionals mentality leads to the extinction of taxi drivers and that is why Grab and Uber is being introduced. Furthermore, Taxi driver are not safe and involved with many criminal cases whereas Grab and Uber is being monitored. By making Grab and taxi the same level is not a good idea.