E-hailing providers can set their own fares, but the surcharge is no more than 2x the base fare;

On the issue of ride-hailing fare hikes, this time with the price aspects. Ride-hailing fares, including grabs, have been reported to have increased “extremely” (up to 400%) during peak hours, causing discontent among those calling for government intervention. This prompted the transport ministry to take action, asking ride-hailing operators to explain the reasons for the price hike.

Operators have told the ministry that the combination of insufficient drivers and significantly increased demand is the main reason for the price hike. That said, they have an impact on rental algorithms – taking into account the distance employed by these companies, the amount of traffic, the type of weather, as well as the market supply and demand.

Meanwhile, consumers are hoping that the government will take action and control prices, but they will be disappointed to hear that such an intervention will not happen. According to Transport Minister Datuk Seri Wei Ka Seong, there are two charges for controlling the fare structure for ride-hailing services, namely basic fare and surcharge.

He said the government does not regulate base fares, while “surcharges cannot be more than double the base fares, taking into account the maximum rates and fuel prices.” In a statement, he explained that ride-hailing operators and providers are allowed to set their own rental structure based on their own formulas and their terms of service in a free market with their customers.

Wei says steps are being taken to resolve the issue. “Ride-healing operators have assured us that more resources will be allocated to increase the number of drivers currently available. At the same time, the government is working with more ride-hailing operators, including taxis and buses, to provide passengers with more options, ”he said.

Currently, he said, more than 130,000 people hold vocational licenses to work as ride-hailing drivers, and the group is expected to grow as driving schools and e-healing operators become more active for 21 operators to become ride-hauling drivers. Candidates will get. Licensed nationwide, including Klang Valley.

Wei said the government urges all ride-hailing operators to improve their communication channels with their consumers and the ministry will continue to monitor the industry to ensure fairness and prevent undue burdens on consumers.

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