Grab’s new service that allows passengers to cross between Johor and Singapore has hit a small problem. It turns out that the ride sharing service has been informed that the current model used is illegal under Singaporean regulations.
The Singapore Land Transport Authority explained that it is illegal for Malaysian registered vehicles to provide “hire-and-reward services” without a public service vehicle licence. Any person who is found to be breaking the law can be fined up to S$3,000 (about RM9,000) and jailed up to six months.
Grab had earlier announced GrabHitch, a for-hire carpooling service that would allow its drivers to operate across the border. The company is currently running GrabHitch as a free pilot program; and has been told that there will be no issues as long as the service remains free of any fares.
Grab is said to be in talks with the Singaporean LTA and regulatory authorities in Malaysia to improve transport connectivity between the two countries. However, this setback may force it to rethink its plans for fully deploying GrabHitch as a regular service.
[Source: Channel News Asia]