Gov't to impose taxi conditions on e-hailing services

Transport minister Anthony Loke said today that e-hailing services will need to meet taxi standards to create a level playing field between both industries.

"After hearing taxi and e-hailing drivers’ complaints, the Land Public Transport Commission (Spad) has come up with regulations to be imposed on intermediary business and e-hailing drivers.

"To be fair to taxi drivers, the government will regulate e-hailing services through the Spad Act (2017 amendment) and Commercial Vehicle License Act (2017 amendment) from July 12 (tomorrow).

"Once the act comes into effect, e-hailing companies must register with Spad as an intermediary business and pay the stipulated fee," he told reporters at the Transport Ministry after a post-cabinet meeting.

The taxi industry standards that e-hailing services need to meet include registering companies or cooperatives with the Companies Commission or Cooperatives Commission, using vehicles that meet the Asean New Car Assessment Programme (NCAP) three-star rating, and sending vehicles over three years old for annual Puspakom inspections. The fee for this is RM55.

Additionally, drivers must obtain public service vehicle (PSV) licenses and be subject to criminal background checks; obtain driver, vehicle, passenger and third-party insurance coverage; as well as undergo six-hour training courses from training centres for intermediary businesses, taxi companies, driving schools or from Spad-accredited training schools. Course fee is RM200 per person.

However, Loke said a moratorium of one year will be imposed to enable all parties to comply with the regulations.

Aside from that, he said the ministry offered benefits for existing taxi drivers. He said taxi drivers have the option of reducing the frequency of the annual Puspakom inspections from twice to once. He added taxi drivers may be charged a maximum of 10 percent commission by e-hailing services companies whereas private car drivers may be charged a maximum of 20 percent.

Existing taxi drivers who wish to join the e-hailing industry may benefit from a RM5,000 incentive to buy a new car, he said. Those who have completed the taxi leasing agreement may also get a similar amount for buying a new car should they want to remain in the taxi industry.

When asked about the discrepancy between taxi and e-hailing maximum charges, Loke said this is to encourage taxi drivers to participate in the e-hailing industry.

He added that e-hailing applications must install emergency call button for both drivers’ and passengers' safety while the passengers also need to upload personal ID such as identity card or passport information on the apps in order to be verified. - Mkini