Advocacy group calls for stronger regulations on fares, a cap on commission for service providers, and greater protection for drivers.
The Gerakan Badan Bertindak Sahabat E-Hailing Malaysia (GBBSEM), which advocates for e-hailing drivers, attributed the situation to weak regulatory enforcement and intense competition among service providers that operate the platforms connecting passengers with drivers.
GBBSEM chairman Zulkifli Othman pointed out that the prevailing tariff structure is no longer sustainable.
Currently, drivers are paid as low as 25 sen per km, plus 43 sen per minute of the journey. However, the service provider takes a 20% cut from the fare, leaving the driver with just 54.4 sen for each kilometre travelled.
Zulkifli said that on occasions when the service provider introduces a promotional discount, that can amount to as much as 10% of the total fare, the cut comes from the driver’s share, leaving them with even lower takings.
“From the very start, the driver gets only RM4 from a RM5 fare, never mind that he has to spend time travelling to pick up the passenger, wait for him, and then navigate the traffic,” he said.
He said that after taking into account the discounts and commission to service providers, there had been occasions when a driver took home only RM28 for a 70km trip.
Drivers also have to contend with long waiting times, cancellations and delays, which reduce their earnings further.
Zulkifli said competition among e-hailing platform service providers has also led to reductions in fares to unsustainable levels, hitting the pockets of drivers even harder.
For comparison, he pointed out that government officials now receive a travel allowance of about RM1 per km when they are on official duty, significantly higher than the rates paid to e-hailing drivers.
He said the lack of proper regulations has enabled service providers to woo passengers by lowering fares, putting downward pressure on drivers’ earnings.
“When companies compete with one another, fares keep falling,” Zulkifli added.
Raising awareness
GBBSEM deputy chairman Zailani Zainuddin said the costs that drivers have to bear, such as fuel, vehicle maintenance, insurance, loan repayments and commissions to the platform are considerations that never cross the mind of users.
He dismissed as untrue claims on social media by service providers that drivers can earn between RM2,000 and RM15,000 a month. “Such figures do not reflect the earnings of most drivers,” he said.
He pointed out that many drivers work up to 16 hours a day to support their families and meet financial obligations, leading to burnout for them.
Debt burden and vehicle loans
Zailani also raised concerns over vehicle maintenance financing schemes, saying automatic loan deductions and high interest rates can leave drivers trapped in debt.
Service providers such as Grab offer loans to drivers to help them pay the cost of keeping their vehicles in peak condition.
The interest on the loan ranges from 21% to 26% per annum, and deductions are made from the drivers’ earnings.
Zailani said drivers who have outstanding loans have to continue paying even when they are unable to work for various reasons. “For instance, they could have met with an accident and needed to send their vehicles for repairs,” he said.
For those who are unable to pay, the compounding interest and penalty raise their obligations further, putting them under greater stress.
Stronger regulation
Zailani urged the government to strengthen regulations on fares, cap commission for service providers at 20% and introduce stronger protection for gig workers.
He also voiced support for the proposed Gig Workers Act, saying it could improve social protection coverage through mechanisms such as automatic deductions for insurance and welfare protection.
FMT has reach out to Grab and Bolt for comment. - FMT
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