The transport ministry says it is looking into ride-hailing services following complaints from users about increasingly expensive fares, which are becoming a burden to consumers. According to transport minister Datuk Seri Wee Ka Siong, the ministry – through the land public transport agency (APAD) – has instructed certain ride-hailing companies to explain and clarify the alleged increase in fares, Bernama reports.
“A fare increase from RM20 to RM70 in the current situation is certainly a burden to the people, so I think as a policymaker, we will see if any party is taking advantage to make a profit. I’ve asked the APAD to review, and to ask the companies to explain what really happened,” he said.
Wee said he anticipates an answer from the ride-hailing companies very soon. “In a day or two. I expect them to give an explanation so that we can see in terms of what we should do and whether to encourage more competition,” he told reporters yesterday.
He added that if the companies blamed it on congestion, he questioned as to why such an issue had never happened before (before the pandemic). He said that the ministry would not compromise with any company found trying to take advantage by increasing fares or companies seeking to manipulate ride-hailing fares to make a profit.
Fares – notably those of Grab – were recently reported to have increased by up to 400% during peak hours, sparking discontent from consumers who called for government intervention. Wee said that to be fair to all parties, the ministry would wait for the explanation from ride-hailing companies before deciding on the next course of action.
Taxi services have apparently benefited from the increased ride-hailing fares – last week, the Combined Taxi Across Malaysia association said that the number of users opting for taxis instead of ride-hailing has gone up by 40% of late due to the latter’s expensive fares during rush hours.
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Why the government need to intervene? I know the ministry is just merely asking the companies to explain, still, why bother? More regulations will result in higher cost, that will ultimately passed on to consumers.
Let the market decides. If the price is too high, look for another competitor that gives cheaper fares, or take taxis (heard they’re cheaper nowadays).
Let them go bust for offering higher fares.
Govt please explain jump in food price
Gomen,pls explain why Tajuddin can be Indon Ambassador? Non better candidates meh?
Nothing to do with automotive but I will just say he was the right man, for the right job, at the right time, for the right reasons.
Ahsiongkor
Now taxis getting 40% increase in business.
You want taxi drivers sleep at the bus stand,cant pay sewa,meh ?
Comeon..this is not Russia or China…democracy with free market forces at play.
Sorry bub. But democracy is not about taking advantage of the customers.
You might not be a user but there are those of us demanding to know why the sudden hike taking advantage of users when desperate. Most of have no voice when dealing with such large corporate entities so it is heartening to know our Transport Minister are listening to the little people’s voices and bringing it up to attention for Grab to answer.
[CP: Govt intervene cos people demanded for it?]
Copy paste: “Grab is taking advantage without any reason changes passanger so hight, they have taxi licence which based on distance travelling not day light Rubbery. Their driver are not helpful to passangers with load of shoping bags.
In this case buses and trains can charge bade on demond not distances.
Externally outrageous, government must look in to this abnormal charges by Crap not Grab.”
Copy paste: “From Setapak to Mid Valley (13km) , on Sunday afternoon cost RM31 and close to RM40 if in morning. It used to be not more than RM20. Its high time authority investigate them thoroughly and regulate their fare . This profiteering must not be prolong .”
Explanations for what? if satisfied means can continue with 400% hike? if not then what?? it’s free market. consumers can chose what they deem best. the real problem is when fuel subsidy is being removed… think about that first.
Copy paste: “So means can charge double ? FYI grab cars are all aging . A lot of them are in terrible condition . Before they were new as it was a new service . So how you gonna keep your car new ? Change car for us every 2-3 years ? Sorry buddy but you don’t seem to know what’s been happening with your own platform .
They have been bleeding ( called a burn rate) for the longest time since battling Uber . The prices they had were not sustainable . So now they have the market they raise the prices . Something tells me this is going to hurt them in the long run . It’s just an app . I’ll just use another app . The riders always come . Maybe a little longer . Taxis are gaining traction . Everything evens out . This time is pay the investors . They have been red lining too long . My 2 cents …. They raised it too much at too fast a rate . Now it’s obvious . People are going to find other alternatives now . So there u have it folks . It was all fake . The last few years you all depended on grab . Well it’s gonna cost you a lot more now cos grab ain’t subsidizing with losses for long . Not sustainable .”
Just leave it be. If too expensive, pplcan take taxi or other modes of transport. Stop trying to control everything and focus on improving your agency services and policy change to suit modern times.
If Grab want to take over the essential line –
#Public Transport,
Then it may need to be well regulated.
If Grab trying to raise price wildly, isn’t it like some taxi driver/limousine driver who randomly inflate the charges, Suka jer dia kacau stability of Malaysia Public Infrastructure.
Hong Kong and Japanese Taxi are good stable, regulated example.
In rebuttal,. I ask why is Malaysia so car dependent.
For me, the root of the problem goes back to the government.
When high demand then high fare rate to encourage more driver and give better benefit lo, if grab driver say salary low, you ask to explain again.
That day I see grab RM60 (usual RM33), then i take bus, RM3, much cheaper. most important is the price is given before I sit on the taxi/grab.
Hmm must be similar to the Gardenia price increase & ask the explain – but end up nothing close case, when Massimo does the same later bigger noise because of :)….but also end up nothing – so likely the same case.
Just boycott Grab!
That’s why the company is called “Grab”. When taxi drivers are overcharging, Grab grabs the opportunity to offer lower prices. Now Grab has dominated the market and wiped out most of the competitors including taxis. So Grab now grabs the consumers’ balls.
Ahsiongkor..kena “grabbed” by Grab’s customers to explain the crap in Grab’s pricing.
We dont buy all these crap.
We don’t buy your crap either, but to each their own.
Hey at least we finally have a Transport Minister that listens to us.
what to do, since grab’s IPO launch at 13 usd per share dec last year, it has been sliding to the abyss now crippling at 3 usd per share, time to diam2 raise prices, cover losses