BY CY Ming
I was shocked reading a report with the heading “Ahead of ride-sharing regulation, group wants drivers suspended upon complaint”.
The statement issued by the Malaysian Public Transport Users Association (4PAM) president Ajit Johl proposed that “Immediate suspension of the ride share driver from the system, upon a complaint from user, and SPAD to be notified immediately. The suspension of the driver can only be lifted upon the completion of the investigation.”
Such reasoning is premised on the belief that all customers can do no wrong, which is preposterous for right-minded individuals. It would effectively put drivers at the mercy of passengers that treat service providers, including waiters, without due respect.
If given such powers, some customers would become bullies, knowing that they can stop drivers from operating by filing just one complaint.
At the same time, introducing a law to penalise passengers for filing unjustified complaints would backfire. As such, it is better to leave things as they are, as ride-sharing companies are dependent on their reputation to compete in the market, unlike taxi companies.
Ajit also proposed that the government abolish the permit system where taxis are rented out to drivers and instead issue individual permits to taxi drivers.
From the many statements issued by 4PAM over the past few years, it appears there were minimal discussions between the president and his elected officials or members.
Firstly, it would be detrimental for any government to revoke licences or permits en masse, as it will shake the confidence of all businesses in the country.
The government had already implemented the issuance of taxi permits to all individuals that qualify. As such, calling on the government to do so is superfluous.
Taxi companies should continue offering their new and used taxis under the so-called “pajak” system, condemned by ungrateful cabbies, but without which they would not have the opportunity to drive taxis for a living.
Many taxi drivers do not qualify for a taxi permit, while others could not obtain bank loans. Many cabbies are dependent on taxi companies for their permits and vehicles.
Abolishing the rental-purchase system will wipe out both taxi companies and drivers. Taxi passengers, particularly the elderly that could not use mobile apps, would be left stranded, and ride-sharing companies would be able to dictate terms freely, such as surge pricing.
Ajit also urged Prasarana take up the challenge and set up a “ride-share” company and offer a franchise scheme for good existing taxi drivers. This will help end the current “pajak” or “slavery” scheme, he said.
While the private sector shy away from operating commuter train services because of high capital involved, it would cost the government much less by allowing bus services to be run by private bus companies, offering subsidies to lower fares.
Rapid Bus Sdn Bhd is already losing millions of ringgit annually and should not venture into the taxi business, which is a sunset industry.
Already, large numbers of drivers have given up their taxis and are now driving private vehicles using Grab or Uber apps. Also, the dozen taxi apps available in the local market cannot compete with ride-sharing apps simply because taxi rates are higher.
Having another state-of-the-art taxi or ride-sharing app would not make a difference. Uber has deep pockets, allowing passengers around the world to pay only 42% of the actual fare on average, subsidising the rest to capture market share.
Only the naïve or foolhardy would compete using the old method.
CY Ming is an FMT reader.
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