The P–hailing conundrum to regulating errant riders

 

The Malaysia Competition Commission says it is talking to food delivery platform providers to prevent possible monopoly abuse.

From Khairil Ahmad

Road traffic violations and bad etiquette are normally associated with errant motorcyclists – the recklessness of youths triggers the wrath, and expletives, of traffic-abiding motorists and residents of real estate that these riders traverse.

As the last-mile services industry expands, the target of such antagonism has now shifted towards food delivery platforms, allegedly for “allowing” and “enabling” bad riding behaviour.

Naturally, this caught the government’s attention and compelled the transport ministry to conceptualise a p-hailing policy paper for the Cabinet, highlighting another possible government (mis)step to overregulate this industry.

The trigger point for the regulation was based on studies conducted by the Malaysia Institute of Road Safety Research (Miros) since 2020. The conclusion of the study was that a high percentage of traffic violations are caused by p-hailing riders, therefore the proposed regulations would address this problem.

Referencing how behavioral and traffic etiquette influences riding attitudes, the key question is if it is fair to entirely blame (or push the responsibilities) on platforms when the root issue is riders’ personal behaviour?

Nonetheless, platforms have always assumed the moral responsibility to remind riders of good values and compliance with road safety.

Platforms also co-opt riders based on the correct – and legal – assumption that they have been, first, officially instructed and tested, and then licensed by the Road Transport Department (JPJ), thus are “qualified” to ply the streets.

Therefore, any “misbehavior” reflects more on systemic failure by the JPJ rather than the failings of the platforms to educate riders.

While promotion of road safety and traffic etiquette is a collective responsibility, platforms, similar to corporations hiring dispatch riders, have limited control over how their riders behave on the road.

The proposed regulation are interesting in that it has digressed from its original intent of addressing high traffic violations.

The centrist local think tank, The Centre, in its Jan 13, 2021 report, pondered the possibility of a riding regulation as a case of “over-regulation”.

For example, platforms should conduct and verify inspections to ensure that vehicles are roadworthy and free from modifications, and also prohibit anyone below 21 from being hired as a rider.

These examples appear so unrealistic that it will force platforms to add a layer of bureaucracy and costs that could deprive thousands of people of the opportunity to earn an income while also denying the flexibility that is the hallmark of the gig economy.

The critical question is, therefore, will this proposed regulation change the riding attitude and behaviour that reduces traffic violations, accidents and deaths?

Now comes this paradox – the proposed regulation, at face value, doesn’t appear to solve problems that originally triggered the intent for such regulation.

Thus the next question is what’s the raison d’etre of the proposed regulation?

Industry sources indicate that the government intends to do the following:

• determine fares set by platforms without a clear understanding of the business model;
• “charge” a licensing fee on platforms and riders; and,
• “curate” new training courses for riders, highlighting again that the government is “assuming” how the industry works.

Still, the proposed regulation is praiseworthy for its intent on riders’ safety and welfare. However, this should not be at the expense of impeding industry growth that adopts a “short-term populist outlook”, just because most of the riders are Malay youths.

If the intent is to address traffic violations and provide a safe environment for riders, then the government and the industry should collaboratively promulgate a solution to address it. A one size fits all approach is not ideal.

Inculcating positive road riding behaviour and etiquette must start early – in schools, driving/riding schools and a concerted effort with the government traffic enforcement authorities and industry actively ensuring safe streets for all. - FMT

Khairil Ahmad is a consultant with Hann Partnership.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.