Ride-hailing service inDriver‘s operations in Malaysia may have hit a bit of a snag. Earlier this month, the road transport department (JPJ) carried out a raid on a company processing inDriver applications. The firm was suspected of operating with a business licence that had expired.

The department said that the action on September 7 was taken following information obtained from the land public transport agency (APAD). During the raid, the JPJ seized several computers as well as other promotional material and equipment from the company for further investigations.

In a media statement, JPJ director-general Datuk Zailani Hashim said that any company operating a ride-hailing business or engaged in ride-hailing activities without a valid licence could be charged under Section 12A (1)(8) of the APAD Act 2010, and could face a fine of up to RM500,000 or a jail term of not more than three years, or both, if found guilty.


Click to enlarge

He advised companies wanting to carry out such business activities as well as ride-hailing drivers to register and obtain the relevant licence with APAD or the commercial vehicle licensing board (LPKP). He added that members of the public who use ride-hailing services are advised to ensure that the related applications that they use are licensed, so that passengers are protected by insurance when using such services.

inDriver, a ride-hailing service provider headquartered in California, United States, made its local debut in October last year. The global player, which operates in over 600 cities across 39 countries, said at that juncture that its service was available in Penang, Alor Setar, Sungai Petani, Ipoh, Taiping, Melaka, Johor Bahru, Batu Pahat, Kluang, Kuantan and Kuala Terengganu, as well as in Kuching, Miri, Sibu, Bintulu and Kota Kinabalu.