Link Copiedcheck_circle
Auto News

A Level Playing Field for E-Hailing Starts with the Law

Kumeran Sagathevan

Share via

thumb-(5).jpg


The Ministry of Transport has ordered e-hailing platforms inDrive and Maxim to cease operations in Malaysia by July 24, 2025. The decision sparked public debate, particularly about its impact on drivers in smaller towns who rely on these platforms for income.

The public transport group TPAD (Persatuan Transformasi Pengangkutan Awam Darat) argues that inDrive and Maxim have gained popularity because they charge lower commission fees and offer greater flexibility - helping drivers take home more of their earnings.

But while this driver-friendly model is appealing, it comes with a major issue - regulatory non-compliance. According to the Land Public Transport Agency (APAD), both platforms are operating in breach of the law.

Many of their drivers do not have the required Public Service Vehicle (PSV) licences, and the companies have failed to assign valid e-Hailing Vehicle Permits (eVPs) to their vehicles.


inDrive-Malaysia-2.0-1.jpeg


These rules are not optional. Every e-hailing driver in Malaysia must hold a PSV license, and every vehicle must have an eVP issued by a licensed platform.

TPAD has raised valid concerns that banning these platforms could reduce competition, raise fares, or limit service in rural areas. However, allowing unregulated services to continue poses far greater risks - such as unsafe vehicles, unlicenced drivers, and declining service standards.

Licenced platforms like Grab and AirAsia Ride comply with these regulations and absorb the added costs of doing so.

In contrast, inDrive and Maxim have avoided these requirements, giving them a clear cost advantage. By spending less and charging lower commissions, they can undercut competitors - but at the expense of fair competition and safety.


maxim-e-hailing-e1678933945394-(1).jpg


There’s also a serious insurance issue. E-hailing vehicles require a specific e-hailing insurance add-on that only applies if the trip is booked through a licensed platform with a valid eVP. Without it, passengers are not protected in the event of an accident.

We however agree with TPAD's call for a comprehensive review of the e-hailing industry and regulated fare structures. But in the meantime, building a fair and sustainable ecosystem starts with enforcing the rules already in place.

If inDrive and Maxim wish to continue operating in Malaysia, then they must comply with the same laws as everyone else.


Tagged:

InDrive Malaysia
InDrive and Maxim
Public Service Vehicle (PSV)
e-Hailing Vehicle Permits (eVP)
Land Public Transport Agency (APAD)
Share This Article

Written By

Kumeran Sagathevan

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!

Share via

Related News

Auto News
Compliance Or Suspension, Loke Warns Maxim & InDrive

Compliance Or Suspension, Loke Warns Maxim & InDrive

Maxim and InDrive have been given a final warning to fix permit violations or risk losing their licences, says Transport Minister.

29-07-2025
Auto News
P-Hailing Group Questions APAD’s Leeway For InDrive, Maxim

P-Hailing Group Questions APAD’s Leeway For InDrive, Maxim

Penghantar Malaysia is questioning why APAD is allowing InDrive and Maxim to keep operating despite past violations.

25-07-2025
Auto News
Maxim, inDrive Given 3-Month Probation

Maxim, inDrive Given 3-Month Probation

Maxim, inDrive are back in service under a three-month APAD watch after fixing permit issues that previously led to their suspension.

24-07-2025
Auto News
InDrive And Maxim Ordered To Halt Operations By July 24

InDrive And Maxim Ordered To Halt Operations By July 24

APAD has ordered Russian eHailing services InDrive and Maxim to stop operating in Malaysia from July 24, 2025.

13-05-2025
Auto News
InDrive Set To Terminate Operations In Malaysia?

InDrive Set To Terminate Operations In Malaysia?

e-hailing firm InDrive reportedly sees Malaysia operations face termination by APAD for allegedly flouting its guidelines.

02-05-2025
Auto News
InDrive Malaysia Eyes 40,000 Drivers Registered By End of 2025

InDrive Malaysia Eyes 40,000 Drivers Registered By End of 2025

InDrive Malaysia reveals steady 2024 growth rates, aims to have over 40,000 drivers registered by end of 2025.

12-02-2025
Auto News
Compliance Or Suspension, Loke Warns Maxim & InDrive

Compliance Or Suspension, Loke Warns Maxim & InDrive

Maxim and InDrive have been given a final warning to fix permit violations or risk losing their licences, says Transport Minister.

29-07-2025
Auto News
InDrive And Maxim Ordered To Halt Operations By July 24

InDrive And Maxim Ordered To Halt Operations By July 24

APAD has ordered Russian eHailing services InDrive and Maxim to stop operating in Malaysia from July 24, 2025.

13-05-2025

Latest News

Auto News
Updated Fuel Prices From 1 To 7 January

Updated Fuel Prices From 1 To 7 January

The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 1 to 7 January, 2026, the rates are as such.

31-12-2025
Auto News
Selangor Police Collect RM19.5 Million During Summons Discount Period

Selangor Police Collect RM19.5 Million During Summons Discount Period

More than 258,000 traffic summonses were settled in Selangor during the two-month 70% discount programme, collecting RM19.5 million.

31-12-2025
Auto News
Traffic Summons Discount Ends, Tougher Penalties Ahead – Should Authorities Extend?

Traffic Summons Discount Ends, Tougher Penalties Ahead – Should Authorities Extend?

The traffic summons discount is over, millions of fines remain unpaid, and stricter penalties kick in next year

31-12-2025
Auto News
LRT3: 33 Problems Identified, Solutions Ready, Tests Ongoing

LRT3: 33 Problems Identified, Solutions Ready, Tests Ongoing

All 33 technical problems identified on the Shah Alam Line have proposed fixes, but full testing is still underway.

Auto News
KLIA T1 Moves Customs Checks — Here’s What You Need To Know

KLIA T1 Moves Customs Checks — Here’s What You Need To Know

Customs checks at KLIA T1 will move to the departure gates from Jan 1, promising smoother departures.

Auto News
China Set to Overtake Japan as World’s Top Auto Seller in 2025

China Set to Overtake Japan as World’s Top Auto Seller in 2025

China set to become world’s top auto seller in 2025, overtaking Japan as domestic and overseas sales growth surges.

Auto News
KTMB Southern Express Ends Service As ETS Takes Over

KTMB Southern Express Ends Service As ETS Takes Over

KTMB will end the Southern Express on the Gemas–JB Sentral route from Jan 1 to make way for eight daily ETS trips.

30-12-2025
Auto News
Can Instalment-Based Payment Scheme Help Solve Unpaid Summonses?

Can Instalment-Based Payment Scheme Help Solve Unpaid Summonses?

Road safety expert suggests instalment-based payment scheme could help resolve unpaid summonses. Do you agree?

30-12-2025