THE Transport Ministry should take immediate action to rein in the exorbitant e-hailing fares as they are burdening the people, said Consumers’ Association of Penang.

President Mohideen Abdul Kader said this can be done by setting a price ceiling that is reasonable for both drivers and passengers.

“The recent Grab price hike is burdensome and frustrating as some customers have no choice but to use e-hailing services.

“It is baffling that the transport minister (Wee Ka Siong) said e-hailing fares will remain unregulated.”

Wee yesterday said e-hailing operators’ licences can be revoked or suspended if they violate the allowed surcharge rate, which is 200% of the base fare.

The Land Public Transport Agency has been ordered to investigate the matter as the surcharge rate had been agreed on in 2019, he added.

“E-hailing operators are charging between 70 sen/km and 90 sen/km (based on the base fare).

“They are given the flexibility to impose surcharges according to the rule, based on demand and dynamic pricing.”

However, Wee said, fares should not exceed 200% of the base fare.

Mohideen said e-hailing services are a necessity for those who do not own a vehicle.

“Of course there are cheaper modes of transport (like public transport), but they are not always feasible.

“For example, taking a bus will definitely cost less than taking an e-hailing ride.

“But there are drawbacks like long wait time between buses, time constraints, health or physical conditions, as well as lack of bus stops within a reasonable distance from where one needs to be picked up and dropped off.”

Grab reportedly said the surge in fares is due to fewer Grab drivers on the road, but Mohideen said this does not make sense.

“The exorbitant fares do not serve to attract more drivers nor ease the burden of drivers caught in traffic. It only serves to make consumers suffer.

“To those who claim Grab is not a monopoly as there are 21 other e-hailing firms in operation, they should use only e-hailing services to travel for a week and let us know whether they can consistently get rides from any other company.

“Or they may be forced to open the Grab app after repeatedly hitting the ‘book now’ button on other e-hailing apps for more than 30 minutes.”

Mohideen said e-hailing services are allowed a price hike of not more than 200% of the base fare, and that authorities said they will need “strong evidence” to take action.

“Surely the issue of a Grab fare price hike of 400% that has been circulating in the news is a strong enough evidence.

“We also received a complaint from an elderly woman who said her ride, which would usually cost RM9, had cost her RM22, and this was during off-peak hours.”

According to news articles, he added, Wee indicated that the maximum 200% surcharge is not reasonable.

“We agree wholeheartedly that the permitted surcharge of 200% is too much.” – May 27, 2022.