Back in January 2023, we reported that Grab rides in the Klang Valley is getting more expensive because Grab changed their fare structure, where the fare for each minute becomes pricier.
This is beneficial to Grab drivers – where they will receive better payment during peak hours and also during traffic jams. On the other hand, for users, they will see a slight change in fares. But e-hailing drivers are still not satisfied with the fares they are getting from e-hailing operators and asked for the government’s intervention.
Free Malaysia Today reports that the Ministry of Transport has decided not to get involved in regulating the fares of e-hailing services and will instead let the market determine the prices.
The Minister, Loke Siew Fook, acknowledged that the E-hailing Drivers Association (EHO) had requested the government to intervene in setting a floor price for fares, but stated that no decision had been made yet.
He noted that while he understood the drivers’ concerns about operating at a loss and taking into account operational costs, implementing a floor price may lead to an increase in fares for users.
Therefore, the Ministry prefers to let the market determine the fares through dynamic pricing involving EHO, drivers, and passengers. The EHO had requested a floor price to protect the welfare of drivers who are burdened by increasing competition and rising expenses.
