"Public transport services as ride-sharing operations like Uber and Grab “are here to stay”. say SPAD Chairman

View photos

SPAD chairman Tan Sri Syed Hamid Albar (pic) said the popularity of both Uber and Grab has been acknowledged by even Prime Minister Datuk Seri Najib Razak, which was why the government is setting out ground rules for these new services. — Picture by Saw Siow Feng

KUALA LUMPUR, Aug 16 — E-hailing services like Uber and Grab have become an integral part of the Malaysian transport system and must be regulated, the Land Public Transport Commission (SPAD) announced today.

In unveiling a slew of initiatives to transform the traditional taxi industry, SPAD chairman Tan Sri Syed Hamid Albar said the government has to allow room for new public transport services as ride-sharing operations like Uber and Grab “are here to stay”.

“E-hailing is here to stay,” he told a news conference here.

Syed Hamid said the popularity of both Uber and Grab has been acknowledged by even Prime Minister Datuk Seri Najib Razak, which was why the government is setting out ground rules for these new services.

“If they are here to stay, so let us regulate them,” he added.

He also clarified that the 11 initiatives proposed by SPAD and which the Cabinet has agreed to were part of the Taxi Industry Transformation Programme (TITP) that is not meant to favour ride-share services, as alleged by several taxi companies earlier today.

“I think, it is not that we are giving favour to e-hailing companies. We want to be able to have a dynamic fare structure where current taxi drivers don’t suffer.

“That is what we meant by creating a more fair and just system. They can charge either metre or according to e-hailing,” Syed Hamid explained.

Under the initiatives, companies using the e-hailing system are required to register with the Companies Commission of Malaysia; their drivers must also have a SPAD-approved driver identification card.

The proposal also includes allowing all cars, irrespective of local or foreign models, to be used as public transport vehicles.

SPAD chief executive officer Azharuddin Mat Sah who was also present at the same news conference said the commission is introducing new regulations for Uber and Grab due to the high demand for their services, and to create a level playing field for the industry overall.

“Our role in SPAD is to provide level playing field so companies can compete. The world and technology is ever changing. Consumers want it. We did a survey end of last year, 70 per cent want Uber and Grab to be regulated,” Azharuddin said.

Starting September 1, SPAD will introduce a new individual taxi licensing system that will makes compulsory registration for anyone interested to become a taxi or hired car driver.

Azharuddin said such licences will also be extended to “part-time” ride-sharing drivers.

Syed Hamid further suggested that taxi drivers too can be part-time ride-sharing service drivers to help increase their revenue.

“They can do it part-time. They can do it to make more income to improve their lives,” he said.

SPAD proposed the initiatives in a bid to end the year-long conflict that has pitted traditional taxi drivers and ride-share drivers, to the detriment of passengers.

The new system also seeks to introduce a merit-demerit system for drivers, as well as a more rationalised fare structure which would take into consideration a better metred structure and zonal rates for certain areas.

The commission will also conduct background criminal and road offences checks of the potential drivers, in a bid to address security concerns.