Malaysia

Group asks govt to regulate fares to help e-hailing drivers

Price bidding system does not work, says Grab Drivers Malaysia Association president.

Updated 2 years ago · Published on 13 May 2024 10:54AM

Group asks govt to regulate fares to help e-hailing drivers
Grab Drivers Malaysia Association has called on the government regulate fare price. – The Malaysian Insight file pic, May 13, 2024.

THE government must consider the plight of e-hailing drivers instead of just focusing on the interests of consumers, an e-hailing drivers’ group said.

Grab Drivers Malaysia Association president Arif Asyraf Ali said the government must help regulate fare prices, adding that drivers suffer when rates drop for trips.

He warned that if they are left to face their challenges on their own, many would leave the industry.  

He said the current price bidding system is not the solution.

“With the bidding system, both passengers and drivers can come to an agreement on a fare but that does not help the drivers.

“It can either go up or go down. I will give you an example: The usual rate for a trip from KLIA to the city is RM90 to RM150, depending on the distance. But with the bidding app, the price can go as low as RM35, which is totally unacceptable. But there are drivers who are willing to take it because there’s no other choice.

“The bidding system will not benefit the drivers and consumers can drop the price unnecessarily. As an organisation, we disagree with the bidding system,” Arif told The Malaysian Insight.

On Saturday, Transport Minister Anthony Loke said e-hailing services are not allowed to use the price bidding system.

Loke said he has directed the Land Public Transport Agency to look into the system that is currently in use.

Under the bidding system, e-hailing drivers can set their price for a journey before customers bid on the fare, provided the fare is agreed upon.

Users says this could compel passengers to pay higher prices.

Arif said the solution is for the government to regulate the fares.

“The government has to control the price. It is out of control. Putrajaya has to come up with a mechanism so that the driver doesn't lose.

“No company is catering to the driver. All of them are just making money out of us. They don’t care about us,” he said.

Drivers quitting

Arif added that if the situation does not improve, there will be no e-hailing drivers left.

“No one wants to do a job that is not worth doing,” he said.

It was reported that up to 10 e-hailing drivers were quitting the industry every day as companies drop their rates to compete.

Although the price war benefits the passengers, it is causing drivers to bear the brunt of low fares.

A 42 year-old driver, who wished to be known as Syam, said the government is doing the right thing by outlawing the price bidding system.

He agreed that the government must regulate fares to help the drivers earn more.

"Actually, with bidding, customers sometimes lose too. If a passenger needs to go to a destination, the driver can raise the price higher than it should be.

“So it is not a good system for both parties. The government should control the fares. It should not act as just a peacemaker,” said Syam.

Last month, e-hailing companies said they will work with the government and community to ensure a fair and sustainable environment for drivers.

Grab Malaysia said it was committed to fostering economic growth for all Malaysians.

“For our driver-partners, we address this by ensuring they have consistent earning opportunities and fair compensation for each booking.

“Our goal is to efficiently match drivers and consumers with an optimised and competitive price, that is based on the supply and demand of that very moment.

“The fare is also dynamically balanced to meet the timely supply of drivers, road conditions, and other factors.

“We aim to incentivise high service levels, rewarding driver-partners with a strong track record of good reviews and a high trip completion rate by offering priority allocation to minimise their time driving around looking for a booking,” it said. – May 13, 2024.

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