MOTORCYCLE-HAILING services will not pose too much of a threat to e-hailing competitors like Grab as consumers still prefer riding in cars for longer trips, drivers said.

Grab drivers might lose out on short-haul trips but are confident that most commuters will stick with e-hailing cars for longer distances.

Malaysian Grab Drivers Association president Arif Asyraf Ali is anticipating a 10% to 15% drop in business when the pilot or proof-of-concept (POC) run for bike-hailing services begins in January.

“We can’t predict exactly how much (we will be affected) until the rides are operational. We will also have to see their fares and what reward structures are in place.

“But I don’t think there will be much effect,” he told The Malaysian Insight.

Transport Minister Anthony Loke said last week Putrajaya has approved a test run for bike-hailing services for the government to evaluate demand for the service as part of plans to regulate it.

The trial service will be confined to the Klang Valley and is expected to fill in gaps in last-mile connectivity in the public transportation system, such as between LRT stations and a commuter’s final destination.

Bike-hailing will eventually be subjected to licensing rules and regulations under the Road Transport Act, and to the same terms for e-hailing services, such as Grab.

Arif agreed that motorcycle-hailing would have the advantage when serving commuters in city areas for short distances.

As it is, Grab drivers try to avoid driving in downtown Kuala Lumpur, especially during peak hours.

“So, for short haul trips, bike-hailing will have the advantage. For example, if someone wants to go from KLCC to Bukit Bintang, he might opt for bike-hailing rather than wait in a traffic jam,” he said.

The advantage of Grab e-hailing services, on the other hand, is safety, protection from weather and comfort, Arif said.

“Commuters would still prefer to ride in our cars, especially for long trips. It is also safer.”

Home-grown bike-hailing service provider Dego Ride was taken by surprise with this development, with its founder, Nabil Feisal Bamadhaj, saying it is now rushing to discuss plans in order to roll out operations next year in accordance with the ministry’s regulations.

“We are truly surprised by this development and have a lot to do in order to meet the Transport Ministry’s guidelines to relaunch our own home-grown motorcycle taxi services.

“What’s important now is serving the public, so that they can access our motorcycle taxi hailing services reliably.”

Dego Ride has yet to finalise its charges and is working to put its bikes on the road early next year.

Motorcycle e-hailing services, while widely used in several countries, including Indonesia and Thailand, only came into the limelight in August in Malaysia when Youth and Sports Minister Syed Saddiq Syed Abdul Rahman said he wanted to bring Indonesian firm, Gojek, as a way to provide employment to youths and as part of boosting the gig economy.

This prompted questions on the fate of local start-up Dego Ride, which first provided bike-hailing services in Johor in 2016 but was banned the following year over safety issues. – November 10, 2019.