The proposal could potentially kill the taxi industry in Malaysia, at least according to Big Blue Taxi Services founder and advisor Datuk Shamsubahrin Ismail. He believes that the Land Public Transport Commission’s planned reforms could reduce the incentives for people to become taxi drivers and instead turn to driving for e-hailing services.
According to Shamsubahrin, taxi drivers will end up surrendering their vehicles back to the company and use their own cars. This would result in taxi companies that own the vehicles collapsing due to a lack of drivers. He revealed that that this was already beginning to happen as he has personally had four drivers give up their cars.
Shamsubahrin suggested that SPAD instead shut down both Uber and Grab, and implement a new entity that would cater to all vehicles for hire.
SPAD is preparing to submit a proposal that would see ride-sharing services like Uber and Grab rebranded as e-hailing apps; which would lead to legalising and regulating their activities. According to a report, the proposal could be approved by Parliament by the end of the year.
[Source: The Malay Mail Online]