E-hailing price mechanism complex, no controls for now: Loke
Published on: Tuesday, November 14, 2023
By:
FMT, Shahrul Shahabudin
Loke Siew Fook says while the commission rate is sometimes low, it is still worth it for e-hailing drivers. (File pic)
Kuala Lumpur: The government has no plans to regulate e-hailing charges, including the floor price for consumers and the commission percentage per trip for e-hailing companies, says transport minister Loke Siew Fook.
He said the process to determine the minimum charge or commission was complex and took into consideration a number of variables, and that any changes to either would increase consumer fares.
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“If what is requested is an increase in rates, the fare rates for consumers will rise.
“If that happens, Julau will come back to file complaints. We need to find a balance; e-hailing (companies) use a dynamic pricing mechanism based on supply and demand,” Loke said during Minister’s Question Time in the Dewan Rakyat.
He added that while the commission rate was sometimes low, it was still worth it for the e-hailing drivers.
Larry Sng (PBM-Julau) had asked whether the government would take follow-up action after meeting with e-hailing companies, particularly on measures to increase the income of drivers.
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Loke also said that while the government would maintain its existing policy against imposing a minimum charge or increasing commission for companies, there would be ongoing discussions with e-hailing companies on internal mechanisms to incentivise their drivers.
He mentioned examples such as an initiative by an e-hailing company to notify drivers of special offers at particular times so that they can better arrange their travels.
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