PETALING JAYA: A silent price war is reshaping Malaysia’s e-hailing landscape, and gig workers are paying the price.
Every time a new fintech-backed e-hailing platform enters the market the major players react predictably – slash fares, squeeze margins and undercut the competition. It’s a familiar pattern that has made survival tough for smaller players, and even tougher for the drivers who keep the wheels turning.
This race to the bottom, drivers say, has become a defining feature of Malaysia’s gig economy, where fair competition is scarce and worker protection remains weak.
Speaking to theSun, Muhammad Azahari Mazlan, 36, who has eight years of experience on various platforms, said unionising efforts remain fragmented.
“I’m a member of the Malaysia e-Hailing Drivers Association, though I’m not very active.
“The problem is, many union leaders are too close to company management. They’re not really fighting for us, they just repeat what the platforms want us to hear.”
Azahari said the nature of gig work makes collective organising nearly impossible.
“There are a few unions, but they work in silos. We set our own hours, so coordinating action is difficult. Even if some drivers strike, others quickly fill the gap.
“But things are shifting. Many of us are walking away from major platforms due to consistently low fares.”
Drivers like Tun Kamalul Zaman, 63, point to market oversaturation as a major issue.
“The fares are driven by supply and demand,” said the part-time driver and IT expert. “When too many drivers crowd an area, fares drop. That’s what we’re seeing now.”
He warned the situation is unsustainable. “Unless a lot of drivers quit, this will continue. And remember, e-hailing doesn’t guarantee even a basic monthly income – no RM1,700 minimum wage, no labour protections. A restaurant or plantation job might pay more.”
As of November last year, more than 30 fintech companies had secured e-hailing licences from the Land Public Transport Agency. But according to drivers, the influx has done more harm than good, triggering a cut-throat price war that eats into already-thin margins.
Still, not all new players are following the same playbook.
Bolt Malaysia general manager Afzan Lutfi believes competition, when done right, can be a force for good.
“Healthy competition pushes the industry forward. There may be many licensed platforms, but only a few are actual contenders in the market.
“Our goal is to bring meaningful competition, not just undercut prices but improve the experience for both drivers and riders.”
Afzan said Bolt’s strategy is built on offering greater value – fairer pay, better flexibility and stronger support for drivers – alongside safety features and affordable fares for passengers.
Bolt entered the Malaysian market in the final quarter of 2024 and remains one of the newest players vying for space in a crowded, often unforgiving industry.
But as drivers grow weary of exploitative fare models, platforms offering transparency, support and fairer earnings may finally gain traction and change the game.
