LACK of e-hailing drivers and higher customer traffic are among the reasons e-hailing fares have soared, said Transport Minister Wee Ka Siong. 

In a statement, Wee said some e-hailing companies have seen their number of registered drivers drop by 30% compared to pre-Covid times.

“This lack of e-hailing drivers has indirectly led to longer than expected wait times for a vehicle in some places,” he said, adding that he had met the Land Public Transport Agency and an e-hailing operator (EHO). 

He said it emerged from the talks that the high e-hailing fares were driven by a supply-and-demand imbalance.

“We are now also witnessing a sudden increase in demand for e-hailing services after the country transitioned to the endemic phase (of Covid-19),” he said, adding that traffic congestion has also been a cause of high fares. 

“These factors have had the most effect on the fare algorithms employed by the EHOs, which account for many factors including distance, traffic volume, weather patterns, as well as market supply and demand,” he said. 

 “They all play a part in the increase in fares.” 

Wee said the government does not regulate base fares. However, the surcharge cannot be more than twice the base fare, taking into account peak rates and fuel prices. 

Wee did not name which e-hailing operator the ministry met with, but on Twitter, many consumers complained about Grab.

The fares of the service are reported to have increased by up to 400% during peak hours, triggering calls for government intervention.

Wee said the e-hailing operator the ministry met with has given its assurance that it would raise the number of drivers. 

“At the same time, Putrajaya has also continued to ensure that more EHOs, along with taxis and buses, are available to provide commuters with better last-mile connectivity and more choice,” he said. 

Wee added that more than 130,000 people are licensed to work as e-hailing drivers. 

“This group is expected to grow as more driving schools and EHOs receive more candidates to become e-hailing drivers.”

There are 21 licensed EHOs nationwide  – May 24, 2022.