THE Ministry of Transport and the Land Public Transport Agency have been urged to abolish fare bargaining practices in the e-hailing industry and to introduce a regulated minimum fare to ensure fairness across the sector.
The Malaysian Islamic Consumers Association (PPIM) said that while fare negotiation may appear to benefit consumers, the welfare and income sustainability of e-hailing drivers must not be overlooked.
“It is extremely confusing and inconsistent when taxi services are prohibited from bargaining fares, yet e-hailing services are allowed to do so, even though the Transport Minister himself has previously stated that the ministry has never permitted fare bargaining systems to operate in Malaysia,” the association said in a statement today.
“Therefore, the ministry and APAD should formulate policies that are fair, balanced and comprehensive for the entire e-hailing gig economy ecosystem, encompassing users, drivers and e-hailing service providers, without favouring any particular party,” it added.
According to the association, the decline in fare rates has become increasingly critical and difficult to control since the introduction of bidding-based fare systems in Malaysia. It said the situation has placed mounting pressure on drivers’ earnings and poses a risk to the long-term sustainability of the industry.
“PPIM stresses that e-hailing service providers should compete in a healthy manner by improving service quality, rather than through price wars that ultimately turn drivers into victims,” it said.
On December 23, APAD said in a statement that the government does not regulate fare policies for e-hailing services, with pricing determined instead by supply and demand dynamics.
APAD explained that e-hailing operates as part of the gig economy, functioning as an open market in which company operations may differ from one provider to another.
Under APAD’s licensing conditions, licence holders are required to ensure that drivers do not negotiate fares after successfully securing a booking, and instead provide services based strictly on the confirmed booking received.
The Ministry of Transport is currently conducting a Public Transport Strategic Plan study, which includes an assessment of whether regulating e-hailing fares is appropriate. The findings of the proposed minimum fare study will be presented for further consideration. - December 31, 2025
