Earlier this week, the transport ministry said it had instructed certain ride-hailing companies to explain and explain the alleged increase in fares, following numerous complaints from users. After meeting with ride-hailing providers to find out why this is happening, the ministry said the ride-hailing fare hike was due to a number of reasons.
“From the discussion, it is clear that there are two main reasons that led to this increase in ride-hailing fares; A supply-demand imbalance and high traffic volume lead to long travel times, ”said Transport Minister Datuk Seri Dr Wei Ka Seong.
The first is the lack of a driver. “Some ride-hailing companies have noticed that the number of their registered drivers has dropped by 30% compared to the pre-epidemic period,” he said in a statement. This has indirectly lengthened the waiting time for cars in some places.
Demand for this specialty has grown significantly as a result of recent corporate scandals “Daily life seems to be back to normal and, as expected, there is more traffic congestion on the roads,” he said, adding that increased economic activity has contributed to the rise in fares.
The combination of these two factors has affected the quality of ride-hailing services. “These factors have the greatest impact on the rental algorithms employed by ride-hauling operators, which are responsible for many factors, including distance, volume of traffic, type of weather, as well as market supply and demand,” he explained.
Rents – especially grabs – have recently been reported to have risen by up to 400% during peak hours, causing dissatisfaction among consumers who have called for government intervention. Taxi services have clearly benefited from increased ride-hailing fares – last week, the Combined Taxi Across Malaysia Association said the number of users had increased by 40% to opt for a taxi instead of ride-hailing. During rush hour.