Since the launch of the e-hailing service in Malaysia, it has reportedly begun to ‘kill’ the local taxi industry. Then the situation got worse when the country had to deal with the Kovid-19 epidemic. How bad is the impact on the taxi industry?
Kamaruddin Mohammad Hossain, president of the Malaysian Taxi Association, said in a report Daily MetroAbout 70,000 taxis, including 2,500 executive types and 67,500 local brands, have been stuck and turned into scrap metal since 2014, causing an estimated 9 2.9 billion in losses.
He further explained that a large number of drivers were involved in the vicinity of Klang Valley,
While only 40,000 of the 110,000 taxi drivers nationwide, including Sabah and Sarawak, still survive in the industry.
“Out of that number, 60 per cent of the taxi companies have gone bankrupt because drivers did not want to take taxis due to non-response from consumers.
“Most of the taxi drivers who run small businesses, lorry driving, animal husbandry, farming and some unemployed and even the elderly just sit at home relying on other family members,” he told the newspaper.
Kamaruddin added that the impact was due to a decline in the number of taxi drivers since 2014 after there was no fair control over e-hailing and taxi management to create a gap between services.
“Many organizations tried to survive during that time but in 2018 the situation got worse and some of them had to retire. As a result, some companies leave unused taxis at their respective depots. In the end, there were a lot of taxis stuck in the iron-cut compound, apart from the ones disposed of, ”he said.
Kamarudin added that in order to create healthy competition in the public transport industry, the authorities need to revise existing policies to reduce the gap between taxis and e-hailing, review existing fares through an official review in 2014 and apply to the government to regulate fares. Rates and commissions between taxis and e-healing
“It’s time to bring in more experienced and knowledgeable industry players into the policy-making unit to revive the industry,” he said.