Regulating e-hailing charges will increase consumer’s fares, said Transport Minister

TRANSPORT Minister Anthony Loke Siew Fook (picture) has stated that the government currently has no intentions of regulating e-hailing charges, including both the minimum fare for consumers and the commission percentage per trip for e-hailing companies. 

He said determining the minimum charge or commission involves a complex process that considers various variables and that any adjustments to these aspects would result in an increase in consumer fares.

“If what is requested is an increase in rates, the fare rates for consumers will rise.

“If that happens, Julau will come back to file complaints. We need to find a balance; e-hailing (companies) use a dynamic pricing mechanism based on supply and demand,” Loke said during Minister’s Question Time in the Dewan Rakyat.

Loke was responding to Larry Sng (PBM-Julau) had asked whether the government would take follow-up action after meeting with e-hailing companies, particularly on measures to increase the income of drivers.

He answered that while the commission rate was sometimes low, it was still worth it for the e-hailing drivers but while the government would maintain its existing policy against imposing a minimum charge or increasing commission for companies, there would be ongoing discussions with e-hailing companies on internal mechanisms to incentivise their drivers.

He mentioned examples such as an initiative by an e-hailing company to notify drivers of special offers at particular times so that they can better arrange their travels. – TMR