Ride-hailing service providers are reiterating the point that major service issues could arise when new regulations are enforced come mid-July.
The government has imposed a July 12 deadline for all ride-hailing drivers to be registered for a public service vehicle (PSV) licence. With the licence application process being cumbersome and expensive, ride-hailing companies foresee between 20% and 50% of their drivers quitting, primarily part-time drivers, as The Star reports.
Registration for the licence, which involves sitting for a six-hour training course at a cost of RM200, began on April 1 at authorised e-Hailing Operator (eHO) driving institutes and training centres. Drivers also need to pass criminal background and medical checks, contribute to Socso, purchase add-on car insurance and equip their cars with safety equipment, including fire extinguishers.
Vehicles to be used for ride-hailing duty that are less than three years old will also need to be converted from an individual private vehicle to an e-hailing private nehicle, while cars over three years old must be inspected at Puspakom, for which RM55 needs to be paid. It is estimated that a driver will need to spend around RM800 to complete the requirements.
“Drivers dropping out is definitely going to happen, that is undeniable. We are expecting a minimum of a 20% dropout rate,” Mula Kuala Lumpur branch manager Kumeran Sagathevan said. He added that while full-time drivers will comply with the regulations, part-time drivers will likely stop driving.
“The part-timers do not want the hassle of applying for the licence, they like the simplicity of becoming a driver where you can just turn on the app and start driving. When you impose regulations like this, ride-hailing is not exactly ride-hailing anymore.
As for Carriage For Her, CEO Nick Smith said the company anticipates a 30% to 40% dropout rate from its pool of female drivers. “Many of our drivers haven’t made up their mind on whether to apply for the licence or not. Many are still adopting a wait-and-see attitude,” he said.
He added that the regulations will increase some companies’ expenditure, resulting in fares possibly being adjusted. For example, Carriage For Her is paying RM100 per driver to register them for the licence, but has no plans to increase that price at the moment, he explained.
Meanwhile, Grab Drivers Malaysia Association president Arif Asyraf Ali expects the dropout rate to be as high as 50%. He said that with fewer drivers on the road, consumers and riders may find it difficult to find a driver and the increased demand may drive up fares.
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We all were having great Grab services. All these problems started when the lazy teksi guys protested, amok, strike and made so much of noise.
Then Government had no choice but to implement so many requirements for the Grab driver making it so difficult.
It is a pity that all of us now have to suffer just because the teksi drivers are all lazy and pampered and used to their goyang kaki lifestyle and were too jealous of the Grab driver
Now, it would be difficult for normal people also to earn a living driving Grab to supplement their income. I really hope the old lazy teksi drivers try their level best to be hardworking
The return of our brother Big Blue! Thank you Tun! he he he he
Good old taxi services can cover the drivers shortage. So no problemo
Habis lah. Pity so many young hardworking people who wanted or were doing Uber and Grab.
They were hardworking, so, they should be rewarded.
But in Malaysia, hardworking and merit has no meaning. Hardworking and merit is what Singapore practices.
In Malaysia, people want the easy way out of things. So, this encourages lazy attitude. It has become so common, that laziness is a virtue already.
This is why poor Grab drivers who are hardworking have to suffer and go through so many lesen requirements.
Thanks to the lazy pemalas yellow and red cabs of the past who like to relax, lepak, sit under a tree and smoke etc.
The commuters will suffer now because our Government is inefficient and slow at doing things. We must learn from Singapore how to do things fast.
JPJ workers are too slow. Such a huge and big department but slow at issuing license and approvals.
JPJ workers too used to lepak and goyang kaki lifestyle for 60 years. Susah nak tukar old habits bro
Pity all the Grab drivers in Malaysia. All trying to earn honest living
Singapore LTD (Land Transport Department work 100X faqster than JPJ.
We need to get some workers from Singapore LTD to work in JPJ to show them how to work fast
short of driver just temporary…. its just another day for brisk business like GRAB…. lesser driver means more income for driver…. Rakyat still will continue to GRAB until another better alternatives APP arrives…. in the mean time, there no sight of it yet…..
Make it practical, make it a win-win situation.
Ease the burden for the public.
The public have become very dependent on ride hailing services, which is a saving grace.
We don’t want to return to bad old days.
Everyone needs less bureaucracy.
Goodbye to the past, hello to the future, keep up with the times and help the Rakyat!!!
Regulated taxi services is what we needed. To protect all Rakyat, passengers and drivers incl.
Now it’s not regulated? Shouldn’t it be more enforcement?
Taxi 1 – 0 Ride Hailing
Still have those taxi instead actually.
If taxi driver can pay the price, why not e-hailing driver?
RM55/yr Puspakom inspection, RM115/yr PSV license, RM150/yr medical check-up, RM120-RM200/yr PSV insurance, RM50 fire extinguisher and RM200 1 time course. All just cost less than RM800 or just RM65/month to meet the regulation.
all this process and procedures is still gonna be a barrier to entry for part timers
Those taxi drivers who think the public will go back to them due to the lack of e-hailing cars will be surprised that it is not going to happen. They need to understand the reason why people do not want taxis anymore… No meter – Drivers Fare, dishonesty, not taking passengers to certain parts of the city are just a few main reasons how they dug their own graves!
Basically means the death of any public transport in Malaysia.
Thank you PH Government for listening to the taxi drivers and making it an even playing field.
Have a rather mixed reaction on enforcement on e-hailing rides.. First, would strongly support the gov to impose such regulation towards e-hailing drivers because first its a service involving Income, and not a NGO kinda service.. Hence this income is subjected to income taxes & scosco. Next it involves ferrying a passenger, thus safety of the passenger (customer) is upmost priority, thus here comes the need for e-hailing driving insurance to protect the customer.. The need to inspect vehicles & driver’s health condition is also related to the passenger’s safety. However the thing that i really sympathize is later on the $$ for all this extra regulations will be passed on to the passenger’s.. The driver want to earn a decent living, the e-hailing company wants to earn profit and sustain them self’s, the agencies & insurance parties wil be paid for the services offered for this regulation.. Hence the passenger have to fork out more for a ride.. Also to those who supplement their income especially students, temporary jobless ppl & low income earner will find it difficult to adapt to this regulations..
Because of taxi demanding, goverment ehailling driver suffer, not profitable drive ehailling, seems regulate driver to take psv and socso and raise of car insurance sum, i feel not win2 situation doing ehailling any more, even foreigner can make money in Malaysia even without proper permit but for Malaysian make more dificult to money but need to pay many taxes, but living expenses expenses high risen.
If this psv are require so govt or MOT should provide us a permit like a taxi permit so we can drive our own no comission deduction..no make sense at all..