More on the ride-hailing fare increase issue, this time on pricing aspects. It was recently reported that ride-hailing fares, including that of Grab, had increased “exorbitantly” (by up to 400%) during peak hours, sparking discontent from consumers who called for government intervention. This prompted the transport ministry to act, requesting ride-hailing operators to explain the reason for the surge in pricing.
Operators have told the ministry that a combination of not enough drivers and significantly increased demand are the main factors that have brought about the price surge. These, it is said, have an impact on the fare algorithms – which take into account factors such as distance, traffic volume, weather patterns as well as market supply and demand – employed by these companies.
Meanwhile, consumers expecting the government to step in and regulate pricing will be disappointed to hear that no such intervention will occur. According to transport minister Datuk Seri Wee Ka Siong, in terms of fare structure regulation for ride-hailing services, there are two charges, which is the base fare and the surcharge.
He said that the government does not regulate the base fare, while “the surcharge cannot be more than two times the base fare, taking peak rates and fuel prices into account.” In a statement, he explained that ride-hailing operators and providers are permitted to set their fare structures based on their own formula and their terms of service with their consumers in a free market.
Wee said that measures to alleviate the problem are being put in place. “The ride-hailing operators have assured us that there will be more resources allocated towards increasing the number of drivers currently available. At the same time, the government continues to ensure that more ride-hailing operators, along with taxis and buses, are available to provide commuters with more options,” he said.
He said at present, more than 130,000 individuals hold vocational licenses to work as ride-hailing drivers, and that this group is expected to grow as driving schools and e-hailing operators receive more candidates to become ride-hailing drivers for 21 operators with active licenses nationwide, including in the Klang Valley.
Wee said the government urges all ride-hailing operators to improve their communication channels with their consumers, and that the ministry will continue to monitor the industry to ensure fairness and prevent undue burden on consumers.
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When surcharge is set not more than 2x,
It is already a form of regulation.
Ppl should consider use MRT, LRT, Monorail, KTM with Monthly Pass
And use Grab only for last mileage.
Syukur..
That is the proper way to use ridehailing/taxi actually, not riding the whole journey which defo is costlier.
“Wee said the government urges all ride-hailing operators to improve their communication channels with their consumers, and that the ministry will continue to monitor the industry to ensure fairness and prevent undue burden on consumers.” this is an example of high level talk and no proper solution or ideas.
He already said there will not be any intervention, and isn’t what the readers demanded for no interference from Govt and let the market to decide freely. That is THE proper solution or ideas.
I recalled someone said something like this?
Ben Yap on May 24, 2022 at 3:17 pm
anyone that takes e-hailing will know that due to demand and supply, the fares will go up. But Datuk Seri Dr Wee Ka Siong didn’t mention is it justified that the price go up by 400%? on what basis the extremely steep hike? what is the system’s algorithm to calculate the fare hike up to 400%?
I wonder who is it? Ben something something ya.
Petikan dari Mkini … Wee berkata perbincangan antara Kementerian Pengangkutan (MOT), Agensi Pengangkutan Awam Darat (APAD) dan EHO baru-baru ini …
Kenapa tak ada rep dari Consumer?
Cuz he is the Minister of Transport and not the Minister of Domestic Consumerism?
He is… but to be fair, cross agency efforts are not unknown and should be encouraged if it benefits the rakyat.
DrWee took the knee on this case coz MDC is battling hard to reduce the inflation and impact of shortages felt by rakyat.