This was the consideration put forward by Big Blue Capital Sdn Bhd adviser Shamsubahrin Ismail following the “migration” by tens of thousands of taxi drivers to ride-sharing services Uber and Grab, The Star reported today.
“Taxi firms may need to scrap the rental model and opt to hire drivers on a fixed income basis instead.
“At the rate that taxi drivers are switching, every taxi company is digging its hole, and that includes me. They (taxi drivers) don’t care that there is no coverage,” Shamsubahrin was quoted as saying by The Star.
Shamsubahrin, who has long been an advocate against ride-sharing services, attributed the move by the taxi drivers to the lower rental rate for the private vehicles used in being a Uber or Grab drive partner.
Typically, conventional taxi drivers have to pay up to RM90 daily as rental for the vehicles they lease from taxi companies. This amount was payable regardless of the taxi being used, or even if the driver was unwell and unable to drive.
The Star quoted officials as saying that Grab was luring taxi drivers with a weekly rental rate of RM250 for new cars, compared with up to RM630 for a taxi.
Last week, FMT reported that about 30,000 taxi drivers nationwide had ditched their cabs to join ride-sharing services, Grab and Uber, quoting United Taxi Drivers Task Force spokesman, Rosman Rahmat.
He said local taxi companies had even started to rent out private cars to taxi drivers who are eager to make the switch, adding that the companies decided to do so after the government legalised ride-sharing services.
On August 10, the Cabinet had given its approval to the Land Public Transport Commission (SPAD) to regulate ride-sharing services, such as Uber and Grab.
This followed a presentation by SPAD which showed that 80 per cent of Malaysian commuters preferred using a ride-sharing service compared with the conventional service.
SPAD is currently working on the necessary amendments to existing laws and possible enactment of new ones for the relevant government agencies, towards legalising Uber and Grab.