KUALA LUMPUR – The decision by the previous Pakatan Harapan administration to not regulate e-hailing fares has left drivers in a bind.
Then transport minister Anthony Loke had voiced support for customers to pick whichever services they preferred.
Today, instead of high fares, which provides a greater return for drivers, many operators are offering lower fees in an attempt to woo customers onto their platforms.
As a result, drivers now earn significantly less than they used to, after factoring in the supposed drop in number of passenger bookings and an increase in drivers, amid the Covid-19 pandemic.
To address this, the Malaysians Grab Drivers Association has urged the Perikatan Nasional (PN) administration to introduce a minimum base fare across the board for all operators.
Its president Arif Asyraf Ali said by doing this, it ensures a steady income for drivers while eliminating risk of operators taking advantage of their fleet.
“If you look at operators such as Maxim, the type of fares they are offering for the same trip is ludicrous. Of course, passengers will benefit from paying less, but for us drivers, we hardly make any meaningful income.
“Unfortunately, many drivers are forced to use those platforms as there is a high number of drivers in other prominent services such as Grab,” he told The Vibes recently.
There are currently about 40 e-hailing companies in the country.
Arif said due to the significantly lower fares offered by certain firms, as well as the assumed drop in passenger bookings, bigger players, such as Grab, are forced to charge at a cheaper rate.
He added that Grab now charges its customers as low as 70sen per km during non-peak hours, with a minimum fare of RM5.
Under current regulation, e-hailing companies can collect a maximum of 20% commission off fares paid to the drivers, while the levy for taxi drivers is capped at 10%.
Arif proposed that the government introduce a minimum base fare of RM1.30 per km for non-peak hours and RM1.80 per km for peak hours, while also enforcing the RM5 minimum fare on all companies.
Asked if this may lead to further drop in the number of passengers, Arif merely said: “Malaysians still need to travel to work, buy food, visit the hospital and others, they will still use it.
“Even previously when fares were high, bookings were also high. There’s no way they won’t use our services at all.”
One Grab driver, who wants to be known as Roopan, said his income has been slashed by about half compared to pre-pandemic.
He added similar sentiments are often shared on the Grab drivers’ community Facebook page.
He said introducing a minimum base fare will be a much-welcomed change for all e-hailing drivers.
“There is a risk that some customers may complain, but I think it (introducing base fare) will be a good move all around.
“It’s unfortunate that some companies are trying to make a quick buck by offering insanely low fares, at the expense of their own drivers.” – The Vibes, October 9, 2020
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