The Evolution of E-hailing Services in Malaysia: Challenges and Opportunities
Rise of E-hailing Services in Malaysia
E-hailing services have transformed the public transport landscape in Malaysia over the past decade, offering passengers flexible and convenient travel alternatives. However, recent fare hikes and regulatory changes have sparked debates over the affordability for passengers and fairness for drivers.
Challenges in the E-hailing Industry
According to Universiti Teknologi Mara Institute of Transport (Legal Services and Quality) head Dr. Siti Ayu Jalil, rising operational costs, particularly petrol prices, are key factors driving fare increases. She explained that due to rising fuel costs and adjustments to fare structures, such as increases in base charges and surcharges, have been necessary. This has led to a decline in the number of e-hailing drivers since the Covid-19 pandemic, which has affected service availability and further pushed up fares.
Global Trends and Local Factors
Dr. Siti Ayu Jalil also highlighted that globally, price hikes often align with increases in crude oil prices. Additionally, government regulations introduced in 2019, which require drivers to secure a Public Service Vehicle (PSV) licence, insurance, annual vehicle inspections, and medical checkups, have further contributed to the declining number of drivers. Other factors, such as distance, traffic congestion, and weather, also play a role in the industry.
The Need for Balance and Fairness
Despite the challenges, e-hailing remains a popular choice due to its convenience and seamless booking experience. Shared ride options, which allow passengers to split costs, have also contributed to the demand. Dr. Siti Ayu Jalil emphasized the need for government oversight to prevent excessive fare hikes and ensure fairness, adding that hikes could harm urban mobility and pointed out that Budget 2025 includes plans to enhance public transport as a long-term solution.
E-hailing Drivers’ Concerns
E-hailing drivers have also voiced concerns that fare hikes have not translated into better earnings. Malaysian eHailing Alliances chief activist Jose Rizal said many drivers are struggling due to escalating operational costs. He explained that between fuel prices, vehicle maintenance, insurance, and licensing fees, a significant portion of their income is spent before they even start making a profit. Despite higher fares, their earnings continue to shrink.
Call for Action
Jose Rizal called for stronger government enforcement and greater transparency from ride-hailing companies. He advocated for a gig or platform workers act to ensure fair rights for drivers, including protection against unfair deactivation and access to social security.
Maxim’s Approach to Fares
Maxim e-hailing service provider director Mohd Hazwan Musley said the company adjusts fares based on market analysis to balance affordability, passenger demand, and driver availability. He explained that Maxim only applies peak rates when ride requests exceed the number of available drivers, encouraging more drivers to work during peak periods and in high-demand areas, minimizing prolonged waiting times for users.
Conclusion
The e-hailing industry in Malaysia faces significant challenges, including rising operational costs, regulatory changes, and the need for balance and fairness. While fare hikes have been necessary, they have not necessarily translated into better earnings for drivers. It is essential for the government to provide oversight and support to ensure the industry’s sustainability and fairness for all parties involved.
Frequently Asked Questions
Q: What are the key factors driving fare increases in e-hailing services?
A: Rising operational costs, particularly petrol prices, are key factors driving fare increases.
Q: What are the challenges faced by e-hailing drivers?
A: E-hailing drivers are struggling due to escalating operational costs, including fuel prices, vehicle maintenance, insurance, and licensing fees.
Q: What is the role of government regulations in the e-hailing industry?
A: Government regulations, such as requiring drivers to secure a Public Service Vehicle (PSV) licence, insurance, annual vehicle inspections, and medical checkups, have contributed to the declining number of drivers.
Q: How can e-hailing services balance affordability, passenger demand, and driver availability?
A: E-hailing services can adjust fares based on market analysis to balance affordability, passenger demand, and driver availability, as Maxim e-hailing service provider director Mohd Hazwan Musley explained.