by NURUL SUHAIDI / pic MUHD AMIN NAHARUL

AS THE e-hailing industry continues its growth, there is an urgent need for all players to come up with better ways to empower their driver-partners to ensure the industry is viable in the long run. 

Focus should be given to these drivers as the industry income-earner since they’re being pressured by higher costs, dwindling income and increased competition. 

Hence, if the players are willing to offer better income protection and incentives to their driver-partners, on top of the assistance or support from the government, the industry will create a new standard for the participants. 

According to AirAsia Ride regional CEO Lim Chiew Shan, the e-hailing industry has made it possible for registered drivers to earn extra income with some preferring to rely completely on it as their primary source of income. 

However, Lim said, many drivers are largely struggling to ensure that their income is sustainable since it is impacted by other factors including service location, fare and petrol price. 

“It can be lucrative if drivers have a good strategy to maximise their earnings. 

“However, the monopoly in the market did not help them as the platform fees (by the monopoly) are higher, hence the driver-partners were forced to take up jobs without incentives, and were left without any sort of job security (or) benefits,” he added. 

According to Statista, the value of the online ride-hailing and food delivery market in South-East Asia is expected to more than triple to US$42 billion (RM196.98 billion) by 2025 from US$13 billion (RM60.97) billion) last year. 

Assisting the Drivers 

Lim said AirAsia Ride recently announced a full-time employment programme for its drivers making them the first e-hailing company to do so. 

He mentioned that the full-time driver programme enables AirAsia Ride drivers partners to have a monthly base income of up to RM3,500 including fuel benefits as well as the opportunity to earn a total income of up to RM8,000 with additional drivers’ incentives scheme. 

“The full-time drivers will also be given priority for airport assignments to enable them to earn more from airport pick-ups and drop-offs as travel demand continues to ramp up across the region,” he said. 

Lim added that the company will also continue its efforts to recruit more drivers and look for more innovative and creative ways to reward them. 

Besides AirAsia Ride, GrabCar also initiated a holistic support programme with various new and enhanced support for their driver-partners in sustaining their livelihood. 

This includes empowering drivers with personal development and upskilling courses on Grab Academy, giving higher payouts and benefits. 

Additionally, he also hopes that all insurance companies can offer e-hailing drivers the option of paying for their e-hailing insurance on a daily or monthly basis. 

“Currently all our drivers are required to pay annually and this can be quite costly for some,” he added. Lim also believed that a better social security net and regulation are crucial to protect both parties for the sector to prosper. 

Govt’s Assistance 

Earlier last month, the Transport Ministry required e-hailing drivers to contribute to the Self-Employed Security Scheme under Social Security Organisation (Socso) as a pre-mandatory to obtain a vocational license.

As a start, the e-hailing companies are required to contribute RM13.10 per month or RM157.20 per year for each driver or p-hailing worker. 

The government also will underwrite 80% of Socso contributions for gig economy workers. 

Penetrating e-Hailing Market

On a separate note, Lim said AirAsia Ride is looking to be the disruptor in the e-hailing business as it wishes to create a healthy and competitive market. 

“We see that some customers were forced to pay an exorbitant amount for their e-hailing services on other platforms due to a monopoly in the market. 

“The scenario is similar to how traditional taxis were charging exorbitant rates to customers for years before the emergence of e-hailing services some 10 years ago,” Lim said. 

Lim added that AirAsia Ride intends to provide the best value to the e-hailing industry by allowing customers to ride with the lowest fare, while drivers take home a better portion of the fee. 

“The business has been expanding rapidly nationwide, and there has always been a huge demand for drivers, especially in Sabah where we have recently expanded into,” he told The Malaysian Reserve. 

Compared to other fares, AirAsia Ride is set based on fair pricing, which considers customer affordability by being 10% to 15% lower than the market rate, while still compensating the drivers for any extra travel time caused by heavy traffic. 

Lim said, in line with the high demand, the company will be adding more features to provide a better user experience for their customers.

• This article first appeared in The Malaysian Reserve weekly print edition