SPAD bent on protecting taxi monopoly

SPAD is unhappy that Uber is providing more efficient and cheaper taxi services.

KUALA LUMPUR: The Land Public Transport Commission (SPAD) is driving up the wrong street by being too wary that the arrival of Uber will end the monopoly of taxi permits.

Uber is the company that connects riders to drivers, providing a service that is enjoyed and trusted by people in more than 70 cities worldwide.

Wan Saiful Wan Jan from IDEAS, a think tank, said Uber brings benefits to the common people, especially at this time when the cost of living is on the increase.

“This is why the government should celebrate its arrival and facilitate its growth,” he said in a press statement.

Wan Saiful said instead of celebrating the arrival of a service that consumers want, it sounds as if SPAD is more interested in protecting those with vested interest who monopolise taxi permits.

The main criticisms against Uber rest around three issues: public safety, competition with existing taxis, and compliance with Malaysian regulatory frameworks. These are distinct issues that must not be mixed up.

Wan Saiful said, “I recognise that regulations are necessary to ensure public safety. There are existing laws and regulations that should be properly enforced when a crime takes place and to prevent mishaps.

“Most importantly, we know that consumers would ditch Uber if they are worried about their safety.”

He voiced his concern that since many were opting for Uber despite it not being regulated showed that people had very little trust in the safety of regulated taxi services at present.

“Why is the authority looking at Uber when public sentiment clearly indicates where their attention should be directed if they really want to ensure public safety?” Wan Saiful asked.

In regard to the competition existing taxis faced, Wan Saiful said it would be ridiculous to declare Uber illegal when its popularity was the result of it being perceived as providing better services and at lower costs.

He said the authorities should champion consumers and the common people by facilitating Uber’s growth.

“The authorities should not protect connected businessmen who monopolise taxi permits because they obviously have vested interests. The solution is not to ban Uber. Instead, we must improve taxi services to match Uber’s standards,” Wan Saiful explained.

He added, “Compliance with Malaysian laws is absolutely necessary. The arrival of Uber makes it obvious that the regulatory framework governing taxis in Malaysia is outdated.

“Instead of holding on to regulations that are anti-competitive and monopolistic, SPAD Chairman Syed Hamid Albar could become a hero if he takes this opportunity to completely revamp the rules so that taxi drivers can own their cars and permits, keep the money that they make, and consumers can get better quality at lower prices,” he said.