THE government will monitor e-hailing services from time to time, as well as gather and analyse information before any changes are made, including regarding the proposed fare regulatory mechanism.

The Land Public Transport Agency (Apad) said factors such as the environment of drivers, passengers, service providers and others must be taken into account to ensure balanced supply and demand.

“To date, there are more than 10 major e-hailing service providers offering the service,” said the agency in a statement, following consumer complaints about price increases and a shortage of drivers, especially during peak hours.

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

Meanwhile, Universiti Teknologi Malaysia Azman Hashim International Business School senior lecturer Nur Azam Anuarul Perai said the proposal to regulate prices, such as setting a ceiling price, could prompt drivers to quit due to inadequate returns.

“Prices increase mostly occur during peak hours where demand is usually higher and the situation will be worse if no driver agrees to respond to passenger demand,” he said.

Nur Azam said a possible fare increase and drop in service quality due to some companies dominating the market was not necessarily due to monopolies but it was also influenced by many other factors.

He said high demand and supply challenges created a seller’s market, where the price is set by the seller or service provider.

“It is an inevitable phenomenon in the free market where prices are influenced by demand,” he said.

Nur Azam also ruled out a monopoly in the industry as there were no restrictions for any party to set up an e-hailing company and the absence of price controls could also encourage competition.

Meanwhile, Federation of Malaysian Consumers Associations deputy president Mohd Yusof Abdul Rahman hoped for more competition to ensure consumers get satisfactory services at reasonable prices.

“The quality of e-hailing service is now being equated with the previous taxi services where the price is too high and unreasonable, especially during peak hours,” he said, adding that the authorities should investigate the monopoly allegations. – Bernama, May 22, 2022.