After months on end having regular cabbies protest their services or being attacked, Uber and Grab may finally be legalised following an endorsement by the Special Economic Committee (SEC) chaired by Prime Minister Najib Abdul Razak.
This proposal was submitted by the Land Public Transport Commission (SPAD) last month and it also includes plans to revive the conventional taxi industry. This proposal will be presented to the Cabinet for the final green light this month.
Malaysia’s e-hailing model will form a level playing field between Uber drivers and conventional cabbies for efficient and appropriately-priced transport services.
A government insider has mentioned that someone offering his or her own private vehicle as a taxi must obtain a public service vehicle (PSV) licence and register with SPAD. The said vehicles also must undergo annual inspections with Puspakom, along with enhanced insurance coverage.
130,000 new Uber and Grab drivers are expected to co-exist and compete in the market alongside 67,000 taxi drivers throughout the country. The new taxi industry landscape will also indirectly encourage taxi drivers to embrace third-party booking apps as more than 50% of consumers prefer car-hailing apps compared to regular taxis.
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