Regulars of ride-hailing services like Grab are in for a bit of a shock this weekend, as fares and wait times are set to increase considerably come July 12, according to a report from The Star.
That’s the deadline for drivers to obtain their mandatory Public Service Vehicle (PSV) licence, and the resulting reduction in the number of drivers could make life difficult for users. The Malaysian E-hailing Drivers Association (MeHDA) is predicting hikes as high as 50%, depending on supply and demand.
“We will see fewer drivers when the deadline comes because many part-timers are opting out, plus many other drivers are still not PSV-ready,” said president Daryl Chong. “Passengers will have to wait longer because the distance between them and the drivers will be much further.”
He added that ride-hailing companies may apply surcharges to help with supply issues after the deadline. “The surcharge on fares is already in practice now with a maximum cap of 100% set by APAD [Land Public Transport Agency]. For example, a RM10 ride can go up to RM20 during peak hours.
“E-hailing companies give incentives to drivers during peak hours in the morning and evening to encourage them to pick up passengers. But higher fares would mean fewer passengers. So they will mostly keep the increase minimal, at perhaps RM15 so that passengers are not badly affected. If this mechanism is applied after the deadline, fares will certainly see an increase,” he said.
On Tuesday, the transport ministry said that only 16,338 out of the approximately 167,000 ride-hailing drivers in Malaysia have signed up for the PSV test, with 62% (10,151) of those having qualified for the licence ahead of the deadline.
Chong said that the situation will only be “a transitional occurrence,” as drivers continue to apply and receive their licences. “The number of drivers will pick up again and the situation will improve. We expect 70% of the total e-hailing drivers to be PSV-ready by the end of the year,” he added.
He also said that ride-hailing companies may absorb the price difference and maintain the same fares even when there is a shortage of drivers during non-peak hours. “They will want to keep the passengers by not overcharging them and to ensure they are not affected,” he said.
Grab Drivers Malaysia Association president Arif Asyraf Ali said he also expected higher fares and longer wait times, dubbing the situation “Carmageddon”. However, he stopped short of predicting said increase, adding that the surcharge mechanism is “dynamic pricing that is calculated based on supply and demand.”
“It is hard to say for now, as drivers who are interested to continue driving are still in the process of getting their PSV licence. We can only see where it is heading after the deadline,” he said.
The incoming regulations were hailed (get it?) by the taxi industry, with Big Blue Taxi founder Datuk Shamsubahrin Ismail (pictured above) saying that the laws will eliminate up to 70% of ride-hailing drivers, and that the companies have already pushed hard for taxi drivers to join them. “I can see the demand to be very bright unless the Transport Ministry makes a U-turn,” he said.
While many taxi drivers have signed up to with those companies, Shamsubahrin claimed that the government was still not being fair to them. “I don’t understand what they want. They have to change their character and attitude,” he added.
His comments were echoed by the chairman of the Malay Taxi Drivers Association of Penang, Mohamad Yusoff S. Ibrahim. He said that taxi drivers could only make a living if there was a level playing field with ride-hailing drivers, and that includes a pricing parity. “We want the prices to be the same, then we can survive. Now the public say our price is very high.”
According to Mohamad Yusoff, around 90% of taxi drivers have found it difficult to earn a living, with many having to return their taxis after not being able to pay their loans. “There needs to be a level playing field. We have been doing this from the very beginning,” he said.
President of the Taxi Radio Association of Selangor and Federal Territories Rickman Hiew said that the regulations would benefit passengers as they would be covered by things like insurance. “This is what you call customer service. It is up to passengers who they want to choose,” he said
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great job PH! u guys really reduce these high cost of living burdens amongst the rakyat through the promises ;D
Yay…tq pakatan…we deserve it..now increase other services as well…
All this because the lazy abang abang teksi drivers have been creating problems, boycots and trouble for the Grab drivers the past 4 years.
Cannot believe, they are so jealous and lazy and do not want to work hard like others.
Why be lazy and jealous? Just join Grab and make life easier.
Becoz yr gahmen makes life difficult for Grab drivers ya.
https://paultan.org/2019/04/17/low-response-to-mandatory-inspection-for-ride-hailing-vehicles-only-35-vehicles-tested-as-of-april-10/
Don’t you know how to spell
I just realised in Malaysia we do have Grab Association as well. Is that some sort of Union for Grab Drivers or is it an “Association”?
We have petrol dealer association, taxi driver association, that is for the purpose of welfare of the members. By that definition, is should be knows as “CLUB” instead of “Association”.
No union because Grab driving isn’t a traditional employment. They could form an association but that requires full time staff and contribution from the members (highly unlikely) yet with no legal power to fight their cause. This the same for other rideshares worldwide.
hello..u need a system for taxi drivers that control their discipline, maintain their car cleanliness and improve the services.. not to increase others fares to get your taxi industries competent…i can tell that if you increase the grab fares, it wont help your taxi industries much and you need to find why your taxi rate is much higher instead blaming others for having low fare rate..this kind of mindset wont get you anywhere with your plan…grab drivers can pay their loan, and can earn 2k at least per month (after deducted all the expenses) despite of low fare rate, do you know why your taxi driver cannot?
All the problems arose from the teksi drivers who were used to the tongkat system. They could not stand the hard working nature of the Grab driver. So they protested and demanded for Grab to be highly regulated.
Yeah right. Grab drivers won’t want to spoil their rice bowl. It is all because of Loke’s incompetence in strangling ridesharing with ever more regulations, even higher than those imposed on taxis.
Why did taxi businesses not held to the same benchmark? You know, I know, Loke knows lah!
Nah, drivers quitting Grab because they realise they are not making ends meet. Grab is having the monopoly of e-hailing in Malaysia and starting to squeeze the drivers dry for profits.
imagine…you open a high-class restaurant with premium price.. but food/services wise not up to par…and there is one cafe next to you and sell budget food/drinks with reasonable price but with good services.. and u go tell the owner of that cafe, “hei you, increase your price because I can’t survive”
Two steps forward, twenty steps back
Level playing field…yeah right…how to be ‘LEVEL’ when you charge your taxi driver millions a month to rent a beat up taxi when grab driver just needs to pay around 500 a month for newer vehicle?
Someone needs to stand up on this matter. Taxi company is the fault.
No matter how true you may be, the narrative the douchebags want to assert is it’s ALL abang2 teksi fault. Just like the myth of the 1.6 million civil servants, when CEUPACS themselves quote only 550K servants….
haha..
Can we not to have that idiot face so big?? see also disgusted…
Why low-cost AirAsia is making money while MAS has been ailing since its corporation ?
Can remove the Shamsubahrin’s face? Every time see his face remind me about the dongkey in my kampung
Mohamad Yusoff S. Ibrahim “Now the public say our price is very high”.
Mohamad Yusof, we are saying that the majority of taxi drivers are dishonest crooks looking to cheat client WHENEVER they can. they think that money is dropping from the sky which it doesnt.
change this attitude and taxi will win, easily.
Why keep showing the same skinhead photo over and over? No other one meh?
“According to Mohamad Yusoff, around 90% of taxi drivers have found it difficult to earn a living, with many having to return their taxis after not being able to pay their loans”
Unable to pay the loan for the car is due to the high car price in the first place.
High car price is due to Proton & Perodua existence.
Maybe one forgets that Taxis have many benefits provided by the Govt, like special discounts for purchase of taxis and toll which grab drivers don’t get. But again they blame grab drivers for loss of their incomes when they have many advantages. If now the Govt. has made grab conditions same as Taxis, then Grab drivers should also be allowed to purchase vehicles at a discounted price. Then it is fair, Mr Loke.
Aiyo….the baldy guy again?? Spoilt my dinner la wei….
Good must hv PSV and EVP
The first thing in my mind when reading this is the middle finger, should scrap the taxi once and for all, lousy service, not follow meter, dirty car, the whole world know that and government do nothing!!?
Thanks Mr Loke, you come out a lot of unnecessarily rules and procedure soon you will trouble yourself only.
Mr. TP minister, look into public transport, got special bus lanes but no buses on the lanes got oso rosak lag improve the bus services and less will drive, BTW have you drive to work yourself W/O outriders try yourself, then you will know
Looks like all our youths will be taxi drivers, why can the govement encourage them to learn a trade ET, Plumber, Electrician or any trade with better security n future, can’t be taxi/e hailing drivers for life, maybe for those above 60s OK bcos can’t get jobs
Just let all taxi drivers rot, they deserve it. Always creating problems and leeches government resources.
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