Cab Drivers Are Affected by the Rise Of E-Hailing Services

According to a report published in the Utusan Malaysia, approximately 30,000 taxis have been left abandoned across the nation because their drivers were allegedly forced out of business by the rise of e-hailing services.

It further stated that the number of taxis in use has decreased to approximately 40,000 from the approximately 120,000 that existed prior to the introduction of the e-hailing system. The taxi drivers' group Gabungan Teksi Malaysia (GTSM), which was quoted in the paper, claimed that the reason for this was the difference in fares between e-hailing services and taxis.

Its chairman, Kamarudin Hussain, blamed the government for not regulating the rate of service for e-hailing and claimed that this had led customers to the less expensive e-hailing service.

"E-hailing companies are racing with each other to get customers until they compromise the fares. When that happens, the rates will become very cheap.

“So, certainly customers will use e-hailing and no passengers want to ride taxis,” he was quoted as saying.

Kamarudin also hinted that e-hailing drivers are suffering as a result of the low rates offered by e-hailing apps.
“The government can set a floor price for e-hailing services, and it can be adjusted parallel to taxi services. As how the government adjusted the taxi fares years ago, the same can be done to the e-hailing industry.”

Kamarudin stated that the issue can be resolved if amendment to the Land Public Transport Act 2010 that was passed in April of last year can be implemented, as the Act has the authority to prevent the e-hailing companies from lowering their fares. 

Following a meeting with GTSM last year, Prime Minister Datuk Seri Anwar Ibrahim stated that the government would investigate the idea to improve the taxi industry's ecosystem in order to guarantee the welfare and well-being of the taxi drivers.