PUTRAJAYA – Although e-hailing fares remain largely unregulated, Transport Minister Datuk Seri Wee Ka Siong has issued a stern reminder to industry players that their operating licences can be revoked if they are found exceeding the maximum 200% surcharge limit.
The minister also denied allegations by consumer advocates that the government was siding with the e-hailing companies, following his explanation yesterday on the recent spike in prices being caused by an imbalance in supply and demand and high traffic volume, among others.
The Ayer Hitam MP insisted the claims were untrue, saying the Land Public Transport Agency was currently investigating consumer allegations of unreasonable fare hikes.
“This is because there are claims of charges that have increased by threefold or fourfold,” Wee told a press conference at the ministry's headquarters in Putrajaya, this afternoon.
“But if we want to penalise them (e-hailing companies), we must at least have a strong basis and justification to do so. We will not hesitate to take action.”
Yesterday, he said the government does not regulate the base fare and the surcharge cannot be more than two times the base fare, taking into account peak rates and fuel prices.
He also said the operators are permitted to set their fare structures based on their own formulae and their terms of service with their consumers in a free market.
Wee added that supply-demand and high traffic volume have the most effect on the fare algorithms employed by the e-hailing operators.
The minister also said that the factors are compounded by the drop some e-hailing companies saw in their number of registered drivers, by some 30%, compared to pre-pandemic times – resulting in longer than expected wait times for certain locations.
Asked whether he believed the 200% surcharge ceiling price was reasonable during the press conference today, Wee responded in the negative.
However, he said the rules were made in 2019 before he took the Transport Ministry portfolio.
“First of all, it was decided before, but if you ask me whether this 200% needs a review, I think it requires another process,” he said.
“I do not want to make comments on the previous decision because we inherited all the policies.”
On the status of the investigations against e-hailing companies, Wee said he is waiting for a report on any infringement.
“I have to wait until the report is given because the complaints need to be verified for authenticity. What we want (to see) is genuine experiences and complaints (of customers).
“If they have done wrong, we can suspend (their licences) or even revoke them,” he said. – The Vibes, May 25, 2022
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