E-HAILING companies should cut the commissions they charge their drivers and provide more incentives for them, consumer groups said.

They said e-hailing fares should be regulated so that the service is more affordable.

They also urged the government to open up the e-hailing sector to allow more small players to participate.

Passengers have complained about soaring e-hailing fares, attributed to a lack of drivers.

Federation of Malaysian Consumers Associations (Fomca) president Marimuthu Nadason said Grab – one the more popular e-service providers – was charging its drivers a 20% commission.

He said this was tough on the drivers who had to pay for vehicle maintenance, licences, and fuel.

“It is not easy for the drivers. The service providers should just charge the drivers 10% (commission), then it will be profitable for them (the drivers).

“Due to this high commission, I heard many people don’t want to do Grab. Moreover the cost of living has gone up. It’s getting difficult for them to cope,” he told The Malaysian Insight.

He said the lack of drivers could be due to a lack of attractive incentives.

Fares are reported to have gone up 400% during peak hours.

Grab Malaysia said it had not made any changes to its fare structure, which was dynamic to ensure passengers got a ride and ihe driver-partners were fairly compensated at the same time.

“When there are more people booking a ride than the number of drivers available in an area, fares will surge or go up to encourage more drivers to head to where the passengers are.

“The price fluctuations that our users are seeing are a result of fewer drivers on the road to accept a sharp increase in ride demand from our passengers,” it said in a statement.

Grab said as of mid-May, it had less than 70% of the drivers it had in pre-pandemic times.

Marimuthu said he has recently endured the worst fare hike in the seven years he has used Grab.

“The fares are exorbitant. In the last four weeks the prices have been terrible.

“Going to my office in Shah Alam used to cost RM18 to RM20, but it has gone up to RM31. Sometimes going back home to Petaling Jaya can cost up to RM40. Because of the shortage of drivers, we have to wait 20 to 25 minutes to get a ride. It’s taxing.”

He said the government should permit more companies to operate.

“They can provide e-hailing services around their area.”

Ceiling price

Consumers Association of Penang president Mohideen Abdul Kader said e-hailing fares should be regulated.

“Treat them like buses and taxis and set a ceiling price. The government agencies can find out their operation costs (to fixed the fares).

“Set a reasonable profit and fares. If it’s a free market, a lot of people will be affected (by high fares).”

He said the lower income groups would be affected as they relied on public transport.

“The (high) fares will affect their budget if they are not regulated. Most of the B40 and M40 group are already living month to month because they have a lot of commitments.

“If prices keep increasing they will be affected. Already, the prices of vegetables, chicken and others are going up.”

Last week, Transport Minister Wee Ka Siong said e-hailing operators’ licences could be revoked or suspended if they charged more than the allowed rate, which was 200% of the base fare.

The Land Public Transport Agency has been ordered to investigate the matter, he added.

“E-hailing operators are charging between 70 sen/km and 90 sen/km (based on the base fare).

“They are given the flexibility to impose surcharges according to the rule, based on demand and dynamic pricing.”

However, Wee said, the rates must exceed 200% of the base fare. – June 6, 2022.