THE Transport Ministry (MOT) does not want to intervene on the issue of an e-hailing floor fare, and instead wants it to be determined by the market, said its minister Anthony Loke.

Loke said his ministry is aware of calls from the E-hailing Drivers Association (EHO), which wants the government to intervene in the issue, including the standardisation of rates between cities.

“We understand they requested the government set a floor price for e-hailing. So far, the proposal is still at the discussion stage and there is no decision yet,” he said in a press conference after chairing a National Logistics Task Force meeting in Putrajaya today.

Loke said MOT understands drivers’ hopes on the matter since they cannot work at a loss and there are operational costs to consider.

“We need to understand that if there is a floor price, the fare to users may increase higher, so it is a consideration that needs to be taken into account, too. So if we let the market determine the price, there is dynamic pricing between EHO, drivers and passengers,” he said.

The media previously reported EHO urged the government to implement a floor rate for the e-hailing service to protect drivers’ welfare.

It was reported e-hailing drivers are becoming increasingly desperate as rates spiralling due to competition from several service providers, and even though price competition benefits users, it burdens e-hailing drivers who have to bear the cost of fuel, toll and maintenance. – Bernama, April 11, 2023.