CAP, Big Blue Taxi Services Call For Government To Regulate E-Hailing Fares

Nur Adilah Ramli

30th May 2022 - 3 min read

The Consumers’ Association of Penang (CAP) and Big Blue Taxi Services have both called for the government to regulate e-hailing fares in light of the recent fare hikes reported by passengers.

Specifically, CAP urged the Ministry of Transport (MOT) to set a ceiling price that is fair for both passengers and e-hailing drivers. Its president, Mohideen Abdul Kader highlighted the need for this as e-hailing services have become a necessity for many people without their own transport. He said that these people have no choice but to rely on e-hailing services as public transport is not always a feasible option.

“Take the bus as an example, it definitely costs less than getting a ride with an e-hailing service; however, the drawbacks include the long [waiting] between busses, the lack of bus stops within a reasonable distance from where someone needs to be picked up dropped off, time constraints they may have, certain health or physical distancing,” Mohideen explained.

In addition, Mohideen described the MOT’s preference to keep e-hailing fares unregulated as “baffling”, adding that the unreasonably high fares neither ease the burden of drivers nor attract more drivers to join the fleet; it only causes passengers to suffer. Additionally, he said that the reported increase in fares by 400% is already solid ground for the government to start regulating e-hailing fares.

Meanwhile, Big Blue Taxi Services called for the government to standardise e-hailing fares in order to control and monitor them, similar to the taxi industry. Its founder, Datuk Shamsubahrin Ismail stated that e-hailing fares can be set according to vehicle categories, such as budget, premium, and executive,

Taxi fares are subject to ceiling prices of RM3, RM4, and RM5 per metre for the budget, premium, and executive categories, respectively. “Perhaps, if the government considers doing this [for e-hailing fares], it can prevent fares from increasing, and control it as it would benefit both the customers and drivers,” Datuk Shamsubahrin commented.

E-hailing operators were recently shoved into the spotlight following reports that e-hailing fares had skyrocketed during peak hours. It was identified that supply-and-demand imbalance, and a higher traffic volume, were the primary causes of the fare hikes.

In relation to that, Transport Minister Datuk Seri Dr Wee Ka Siong warned e-hailing operators that their licences can be suspended or revoked if they violate the permitted surcharge amount. To clarify, e-hailing fares are made up of the base fare and surcharge; while the government does not regulate the base fare, it was agreed that the surcharge rate must not exceed two times the base fare.

(Source: New Straits Times [1, 2])

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