E-hailing companies like Grab can have licences revoked if they exceed 200% surcharge limit – Wee

E-hailing companies like Grab can have licences revoked if they exceed 200% surcharge limit – Wee

The maximum surcharge that e-hailing companies can charge passengers is 200% of the base fare, and if they are found to exceed that, they can be suspended or have their licences revoked, said transport minister Datuk Seri Wee Ka Siong.

Complaints by commuters about high e-hailing fares have led to a Land Public Transport Agency (APAD) investigation into the matter. On their part, the e-hailing companies say that prices are up because there are not enough drivers, coupled with significantly increased demand. Grab says that there have been no changes to its fare structure – more on that here.

“We are investigating this matter to see if it is true that some e-hailing companies have violated the allowed surcharge amount, which has been set at 200% of the base fare. If found to be true, we will not hesitate to take action on the operators. Their licences can be suspended or even revoked,” he said yesterday, reported by The Star.

E-hailing companies like Grab can have licences revoked if they exceed 200% surcharge limit – Wee

Why 200%? Wee explained that the surcharge limit was a policy set by the transport ministry in 2019, before his tenure. “This is a policy that we inherited from before. If you ask me whether the surcharge limit needs to be reviewed, that requires another process,” he said, adding that there are more than 25 registered e-hailing operators in Malaysia and passengers have the right to choose if one is charging high fares.

“I want to clarify that the transport ministry does not side with e-hailing companies. Recently, they claimed in the media that the lack of available cars is because of high demand and also a shortage of drivers. They claimed that demand is high recently because people have just withdrawn RM10,000 from the EPF special scheme. This is absurd and I have asked APAD to investigate this,” he added.

Here’s the chronology on the issue. Consumers complain about high fares. The transport ministry asks e-hailing firms to explain and clarify the surge in pricing. The government accepts the explanation and says that it will not regulate the base fare, which is currently between 70 to 90 cents per km. Market leader Grab then comes out to explain itself to the public. Click on the links to recap.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Kapchai on May 26, 2022 at 9:56 am

    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.

    Like or Dislike: Thumb up 10 Thumb down 4
    • On the fence Observer on May 26, 2022 at 3:59 pm

      This Wee kosong of BN gomen is the worst transport minister ever. Certainly low stended menteri BN & fared more worst then Ph anthony loke…

      Like or Dislike: Thumb up 9 Thumb down 19
      • Geng Abang Non on May 26, 2022 at 6:12 pm

        LOL my fellow PH macai detected!

        Like or Dislike: Thumb up 2 Thumb down 0
      • Make Malaysia Great Again on May 27, 2022 at 8:09 am

        Haiz… some people just want to find something to condemn. Inilah spesis tak bersyukur.
        When they do nothing and let free market to decide these people condemn Govt without reasons.
        When they do something about revoking licenses of business that are cheating customers (a very normal punishment) these same people condemn Govt without reasons too.
        Malaysians have this sick disease that they must condemn everything and anything, this is why we will never progress as a nation. Cause of these people.

        Like or Dislike: Thumb up 8 Thumb down 1
  • Sohai on May 26, 2022 at 10:08 am

    Can revoke, can this can that…
    Are the rules made clear to the operator?
    Have we decided whether we want to regulate or not regulate?
    Wee wee shouldn’t make up statements everyday with no cohesion. Your job is to make and implement a policy that works for everyone.

    Like or Dislike: Thumb up 13 Thumb down 24
    • Bangala on May 26, 2022 at 5:46 pm

      ada niat pakai Grab, tarak wang bayar Grab?? niamah bodo. Charges are displayed prior to hailing, lu tak mau bayar jangan pakai!

      Like or Dislike: Thumb up 15 Thumb down 1
  • jasoho on May 26, 2022 at 10:37 am

    Good. Grab is not profitable yet. Close shop. Drivers jobless again. Old taxis uncles happy. Dr Wee is doing a good job to please the ppl. More votes for him next GE…

    Like or Dislike: Thumb up 7 Thumb down 5
  • Ruslan Bahari on May 26, 2022 at 10:46 am

    LoL… would love to see any action taken on them. Grab… you can complaint anything about their transport services, and they do nothing.

    Like or Dislike: Thumb up 5 Thumb down 5
    • One of the worst things they do is multiple deliveries in GrabFood.

      Yes, it makes sense (fuel savings, fewer trips, etc.) but none of that is transferred to the end customer.

      I still pay the full delivery charge and I only know about the multiple delivery/multiple drops after I have booked my meal.

      It’s just another way for Grab to make more money and not give it back to the riders. A rider gets a fraction of the multiple drop, so most of the delivery fee still ends up with Grab.

      Like or Dislike: Thumb up 8 Thumb down 0
    • Celup King on May 27, 2022 at 8:30 am

      One best way to let them know is not to use their services unless there are no other options. When their business starts collapsing then they will listen.

      Like or Dislike: Thumb up 3 Thumb down 0
  • Boycott!

    Like or Dislike: Thumb up 4 Thumb down 0
  • Ben Yap on May 26, 2022 at 2:19 pm

    revoke, jgn x revoke.

    these few days taxi drivers happy coz got business.

    Like or Dislike: Thumb up 1 Thumb down 3
 

Add a comment

required

required