DEGO Ride’s two-wheel taxi service was in business for just six hours on Thursday before the government ordered it stopped, said the motorcycle e-hailing operator’s founder.

Nabil Feisal Bamadhaj told The Malaysian Insight that the order from the Transport Ministry was issued due to safety concerns.

“They wanted a temporary stop (to the service) so that we can resolve issues regarding our business concept and operations.”

Though short-lived, the service saw brisk business, he said.

“The reception was very good, although (the service) lasted only a few hours. Many inquired why it was stopped. They were many calls, from Johor to Penang and the Klang Valley.”

He said ministry officials contacted Dego Ride about 2.30pm on Thursday, informing the company to cease its two-wheel taxi offering.

The ministry gave an assurance that it will work with Dego Ride on bringing back the service, said Nabil, adding: “There is no definite date yet.”

Dego Ride, which focuses on deliveries and logistics, previously offered two-wheel rides before the service was banned in 2017.

The company, which used to have 5,000 riders, is hopeful of restarting the service, following the cabinet’s announcement that Indonesian logistics start-up Go-Jek, which also utilises motorcyclists, will be allowed into Malaysia.

The proposal for Go-Jek’s expansion was made by Youth and Sports Minister Syed Saddiq Syed Abdul Rahman, who said the service could help local youth gain employment.

Syed Saddiq was panned for not promoting Dego Ride, a Malaysian company that is already operating and which had its two-wheel taxi service banned by the previous Barisan Nasional government over safety concerns.

Transport Minister Anthony Loke has said Putrajaya will ensure that no company has a monopoly over the market.

The ministry will soon submit a report on the direction and mechanism for two-wheel taxi e-hailing services.

Services by Dego Ride can be ordered through a smartphone app, starting at RM2.50 for the first 3km and 60 sen for each following kilometre. Riders can only accept passengers of the same sex.

Unlike Grab, Dego Ride does not take a commission cut from each trip. Instead, it imposes a monthly fee on riders. – August 31, 2019.