Govt approval likely to set back Uber business

Govt approval likely to set back Uber business

Uber drivers, especially part-timers, are unhappy over government's requirement for them to have PSV licence.

uber-car
KUALA LUMPUR: Although Uber, the ride-sharing service, welcomed the government’s decision to allow it to operate, it is quite clear that the company prefers the present status quo.

With the conditions that come with the permission given on April 23, amid widespread protests by taxi drivers, Uber is bound to experience a setback in its business.

The stipulation that all its drivers must have a public service vehicle (PSV) licence is expected to be the most problematic for Uber, especially since most of its drivers are part-timers.

One such driver is Amin Arshad, who works as an insurance agent in the day and drives for Uber at night.

“I already have a valid driving licence. Uber is well known globally as a ride-sharing service which uses safe drivers.

“Now I am told I must have a PSV licence. To get that I will have to sit for a test that will take up a lot of my time,” said the 32-year-old Amin.

Like other Uber drivers, he questioned the requirement for part-timers, like himself, to have a PSV licence.

“We always make sure that our passengers feel safe. We drive with care, we don’t speed. You can ask our passengers. They will tell you how well we treat them,” Amin said.

Frequent Uber passenger Shahful Shafiq said he chose Uber because it was reliable, convenient and cheaper than the normal taxis.

“If I travel far, I pay up to 40 per cent less than if I travel in an ordinary cab,” added the 30-year-old graphic designer.

“Uber users also don’t have to worry about having the right change as the fare cost would be debited straight from our bank account, and we get a receipt as well,” Shahful said.

Another user, Sabira Lokman, liked the Uber system of having the fare fixed before the start of a trip.

“The fare is very reasonable and you don’t have to worry about paying more if you are caught in a traffic jam,” she said.

Sabira said some ordinary taxis she took before switching to Uber refused to use the meter and charged exorbitant fares.

Some who used the meter would deliberately take the longer route, the 29-year-old civil engineer added.

Private tutor Vijayaletchumi Subbiah is all praise for the convenience and comfort that Uber provides.

“With an app, I can get the next available service whenever and wherever I may be.

“I pay a fixed price, which suits me. Other cabbies are very unpredictable when it comes to fares,” said the 55-year-old.

Voicing the views of cabbies, Persim, the Association for the Transformation of Malaysian Taxi Drivers, said Uber should never be allowed to operate.

There were over 37,000 taxis in the Klang Valley alone, and some 33,000 more people nationwide were waiting for permits to drive cabs, said Persim Deputy Chairman Kamaruddin Hussein.

He said Uber would provide unfair competition in this already crowded field.

Rawang Budget Taxi Association Chairman Aziz Lebai Milin shares the sentiment: “I disagree with they (Uber and Grabcar) being issued with a licence. Cab drivers would have huge competition with one another and with ride-sharing drivers.”

Entrepreneur Shamsulbahrin Ismail, who owns several taxis, is more conciliatory. He wants the government to standardise fares for taxis and Uber and Grabcar, another ride-sharing taxi company.

“Controlling and standardising the fares would help resolve this issue and bring back people’s trust in taxis,” he said.

Uber General Manager Leon Foong, in an email to Bernama, said: “We welcome the government’s recognition that ride-sharing is a positive contributor to riders, drivers and cities.”

He said the regulations send a clear message that “ride-sharing is here to stay, and provide a competitive landscape that improves conditions for the entire industry, ultimately benefiting riders and drivers”.

Many Uber drivers are unhappy that the company has agreed to the regulations since they believe that it (Uber) has done nothing illegal.

Uber operators around the world feel the same way, and have resisted attempts to declare their service illegal or to regulate them.

They argue that they are operating on the principle of “willing driver, willing passenger”.

Senior law lecturer at a private college, Daniel Abishegam, agrees, saying that Uber is a private vehicle operation and its drivers should not require a PSV licence.

“Uber, as a ride-sharing service, is no different from a driver giving a lift to a neighbour, although it requires the passenger to pay a fee. So, I don’t think the driver needs a commercial licence to operate,” he said.

“If you regulate a law for Uber, you are regulating a law on a private vehicle owner. How do you regulate such a law?”

 

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.