E-hailing apps warn of higher fares, longer wait for rides after July 12

Ragananthini Vethasalam Ragananthini Vethasalam Updated 6 years ago · Published on 4 Jul 2019 7:00AM · 4 Comments

Of some 165,000 e-hailing drivers in Malaysia, only 16,000 have signed up for the PSV test, and of that, only 10,151 have passed. – The Malaysian Insight file pic, July 4, 2019.

FARES and waiting time for e-hailing services will increase as the number of drivers shrinks when the requirement for a public service vehicle (PSV) licence comes into effect on July 12, said operators.

Of some 165,000 e-hailing drivers in Malaysia, only 16,000 have signed up for the PSV test, and of that, only 10,151 have passed. 

MyCar founder Mohd Noah Maideen told The Malaysian Insight that a shortage of drivers is expected when the licence becomes mandatory for e-hailing drivers.

Fares, he said, will be adjusted in accordance with the demand for drivers.

“Let’s say the number of drivers on the road or those available is very low; demand will then automatically be high. Of course the prices will then be adjusted.”

How much the price will rise, however, could only be ascertained when the number of driver dropouts becomes clear.

JomRides marketing head Musfaizal Mustafa said although it is natural for fares to increase if there are not enough drivers, the law of supply and demand will not apply to JomRides as its fares are calculated based on traffic conditions and distance.

That only a fraction of e-hailing drivers have passed the PSV test indicates that there will be a driver shortage come July 12, Musfaizal said.

As a result, customers can expect to wait longer for their rides.

Musfaizal said e-hailing firms still do not know what actions the authorities will take against drivers without the PSV licence after the deadline.

“Actually there is no confirmation or anything in writing on whether drivers will be banned or if the apps will be restricted…

“I am sure there will be a way to restrict drivers who have not met the requirements from driving,” he said.

Noah said MyCar was recruiting taxi drivers to mitigate the shortage of drivers.

“My staff are working at getting taxi drivers to join us.”

At the same time, he said, the company is also trying to persuade as many drivers as possible to get the PSV licence.

He assured that any operational hiccups would be temporary.

He urged customers to understand the situation in the meantime as the apps made adjustments in accordance with the law. – July 4, 2019.

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Comments

  • Anthony Loke screwed up and single handedly increase the living cost and inconvenience to the rakyat. He should be sacked.

    Posted 6 years ago by Butter Scotch · Reply

    • I disagree. Market forces will determine the pricing and this is better regulation of the drivers. Keeps the users safe as drivers will be regulated.

      Posted 6 years ago by Gerald Lau · Reply

    • Ya... blame the authority for everything. I wonder if you blame the Health Minister if you get constipated and can't pass motion. Pfffttt....

      Posted 6 years ago by Alex Lim · Reply

  • Time to exercise the legs more, take buses and use MRT/LRT. Warning of fare hikes in times like these shows that the companies are not proactive and still dreaming of the times of handouts. Market is tough, disposable income is low, so if you know how to put 2 and 2 together, you will benefit while your competition will suffer.

    Posted 6 years ago by Alex Lim · Reply