Taxi drivers waiting for passengers in Jalan Bukit Bintang.
In the final part of StarMetro’s two-part series on ride-sharing apps, we ask captains of the industry how safe, efficient and legal these services are.
IN the past few months, taxi drivers have protested against ride-sharing services like Uber and the MyTeksi owned GrabCar saying that these operations are impacting their business.
They claim that Uber and GrabCar are putting their jobs at risk and are demanding that the authorities put the brakes on those services.
Many cabbies were particularly put off with MyTeksi for introducing the GrabCar service and placing them on the same platform as budget taxis.
Among the grouses brought up by cabbies were that services went against the rules set by the Land Public Transport Commission (SPAD) – which require cab drivers to undergo health checks in order to apply for a public service vehicle (PSV) licence and their cars must be inspected by Puspakom to ensure that they are safe to carry passengers. But these are rules and regulations which Uber and GrabCar users are not subjected too.
Both Uber and GrabCar have defended their services saying that they are not a taxi company but a technology company that uses mobile apps which allow people to submit a trip request via their smartphones; and that at the end of the day, they are providing consumers with a service.
A GrabCar spokesman said that Malaysia’s taxi industry still has issues and has defended its move to introduce GrabCar services in the MyTeksi app.
“Since we entered the market, we have made every effort to improve the industry.
“Through our hard work, we have managed to reduce instances of taxi drivers not using meters, improved the service from our drivers and helped more people find a ride whenever they needed.
“However, we still see there is a gap in the industry, which needs to be filled,’’ the spokesman said.
“Through data analysis of transportation patterns, historical traffic data and feedback, we found that there was a need for a feasible alternative to taxis during critical periods, hence GrabCar was launched.
“GrabCar balances the passenger-to-vehicle demand and supply situation during such periods and expands the choices passengers have when deciding how to commute from one location to another,’’ added the spokesman.
According to him, GrabCar does not see it as double standards or taking rides away from taxis.
“By using the same app, we encourage more people to download the app, thus increasing the network of users for both taxis and GrabCars.
“Therefore, we see this as beneficial for our taxi users as well, especially when it comes to peak periods and users require the most convenient form of transport.
“Drivers will benefit from a larger passenger pool,” he said.
Because of the nature of ride-sharing apps that use private vehicles to ferry passengers, comments have been made about the safety of passengers using the services.
Uber (Malaysia) general manager Leon Foong said Uber takes the safety of both its drivers and passengers seriously.
“Our drivers are screened carefully and go through stringent background checks.
Foong said that passengers too are screened via their credit or debit cards.
Once a rider is registered, the bank will do a RM1 validation check.
Uber also does mobile verification to check if the numbers are legitimate.
“The driver and rider rating system also protects drivers and passengers.
“Unruly drivers or rude passengers are banned from driving or using the service again,’’ he said.
A GrabCar spokesman said: “All the GrabCar drivers on our platform go through a stringent screening process.
“We conduct background checks to ensure that our drivers have a consistently good driving history and do not have any criminal records.
“Our drivers and passengers are also covered with adequate insurance.
The spokesman also pointed out that the service has the most stringent safety protocols and processes in the industry.
“From background checks to vehicle inspections, we make sure our drivers fulfil the strictest criteria,” he said.
“If there are incidents of rogue drivers, we will take appropriate action on a case by case basis.
“By doing this, we are creating a sustainable and useful service to the community, providing both jobs in the market and improving the transport system as well,’’ added the spokesman.
Uber and GrabCar are not illegal services but drivers without proper public service licences face the risk of being arrested by SPAD.
Because these companies are using private cars and unlicensed drivers to ferry passengers, this makes them vulnerable to Malaysia’s laws.
For taxi advocate Y.S Chan, safety is very subjective.
“In the case of private cars that are used by ride sharing services like Uber and GrabCar; it is definitely safer than the old taxis,’’ said Chan.
Chan, who is a former taxi driver, however, said the issue is not safety but rather, the ethics of the business.
Chan explained that the law requires taxis to be licensed and passengers to be insured for passenger risk cover.
Even though Uber says that their ride is fully insured and that every driver partner with Uber is required to have commercial insurance and that driver partners and riders are fully covered in the event of an accident, it is not true.
“The burden falls on the drivers who are using their own personal cars and their own personal car insurance.
“The policy will not cover them if they are driving for Uber or GrabCar and ferrying fare paying passengers.
“So, in other words, Uber and Grabcar are ‘pirate’ taxis,’’ he said.
Chan, however, concedes that taxi apps are indeed a game changer for our local taxi industry.
“In the past, radio-taxi drivers were suspended after complaints by passengers.
“Drivers who subscribe to taxi apps are even more careful as they are swiftly dealt with.
“It would be tough for drivers who relied heavily on taxi apps for picking passengers to go back to the days when they had to cruise in search of passengers, running empty most of the time,” he said.
For Chan, taxi apps make it better for both passengers and drivers, but mobile apps like Uber, GrabCar and Blacklane are designed to circumvent the licensed taxi industry by operating in a black market and actively recruiting private vehicle owners to provide pirate taxi service,’’ Chan said.
“They have scant regard for local laws, avoid engaging with regulators, are ruthless with taxi drivers and put on a messiah facade.
“Radio-taxi companies were gracious to concede that taxi apps are disruptive innovation but legal.
“Using unlicensed and uninsured private cars for transport when many taxi apps and licensed taxis are available is no different from using pirated software and counterfeit goods,’’ he said.
Chan warned that gullible private cars owners would suffer as they bore the brunt of the risks.
They could be assaulted by infuriated taxi drivers or have their cars seized by the authorities.
For more than four decades, the police and Road Transport Department were empowered to seize private vehicles used as pirate taxis.
In recent months, SPAD has confiscated many private vehicles as the drivers were using Uber or GrabCar apps to pick up passengers.
Smart regulation the way forward
Foong said that change takes time.
“This change should not be seen as an Uber versus taxi thing, but more towards a way of embracing smart regulation,’’ he said, adding that smart regulation should be focused on public safety and convenience.
“The 2015 World Bank research findings on transportation showed that the number of people who take any form of public transportation in the Klang Valley is only 20%. What we are doing is targeting that 80%,’’ said Foong.
“We are in discussion with SPAD over this; and we draw inspiration from the Philippines experience, whereby the ride sharing service is recognised as the official mode of transportation,’’ Foong said.
Both Uber and GrabCar are of the view that for any transportation system to be successful and sustainable, it must revolve around passenger safety and choice and not a monopoly.
Both companies say that their success hinges on their ability to communicate with people.
“We understand what Malaysians want and we know how to reach and connect with them.
“Because of this, we have been very successful in building our brand, gaining the trust of our passengers and creating a service that fulfils a need in the community,’’ said the GrabCar spokesman.
“From the start, the belief that our drivers have is not only improve their income, but help improve other facets of their lives, has ensured we developed a strong network of core drivers.
“We also gained the trust of Malaysia’s public and through their support, we have become the largest transport company in Malaysia and the region,” he said.
“However, we see this as part of an overall eco-system of transport that includes other forms of transportation, including taxis,” he added.
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