Ipoh fare rates significantly lower compared with other major cities, says group
PETALING JAYA: Persatuan eHailing Perak president Neduchalian Vengadasalam said while the federal government’s Budi95 petrol subsidy has been welcomed by the e-hailing community in the state, the real issue troubling drivers is not fuel costs but persistent low fares.
Neduchalian told theSun that following an internal discussion with members, a majority of the drivers agreed that the current monthly quota of 600 litres of subsidised Ron95 was adequate for active e-hailing operators in the state.
“Our members appreciate the government’s Budi95 initiative and we acknowledge its positive impact on reducing operational costs.
However, the bigger and more pressing issue is the low fare rates that have long plagued drivers in Ipoh.”
According to findings by the group, fares in Ipoh are significantly lower compared with those in major cities such as Kuala Lumpur, Penang and Johor Bahru, although Neduchalian acknowledged that the situation could be caused by a combination of an oversupply of drivers and platform algorithms that suppress prices in low-demand areas.
“There are simply too many drivers chasing too few passengers.
The platform’s fare algorithm adjusts prices downwards, which directly cuts into the earnings of drivers.
Even with petrol subsidies, the take- home income continues to drop.”
Data and feedback from members show that the effect of low fares is far more damaging to the livelihood of drivers than fluctuations in fuel costs.
The group, which is also an associate member of Gabungan eHailing Malaysia, calculated that while an additional 200 litres of subsidised petrol at a 60 sen discount per litre would save a driver about RM120 a month, the loss in income due to low fares could easily reach RM200 to RM300 monthly.
“That is why we believe the debate should not focus solely on fuel subsidies.
What we need is a fairer fare system that reflects the real cost of living and operating expenses in smaller cities such as Ipoh.”
He said the situation in Perak differs from the Klang Valley, where higher trip volumes and demand help stabilise the incomes of drivers despite similar fare structures.
In contrast, drivers in medium-sized towns often face longer waiting times between trips and fewer high-fare journeys.
“The current system fails to account for regional differences.
“E-hailing drivers outside major urban centres are bearing the brunt of an unbalanced algorithm that rewards high-density areas while penalising smaller markets.”
The group is urging the Transport Ministry and related agencies to carry out a national fare structure review, including the establishment of a minimum base fare that aligns with local operating costs and living standards.
“We are not asking for special treatment.
We simply want a transparent and fair pricing mechanism that allows drivers to earn a sustainable income.”
In addition to fare reform, the association is calling for a dedicated engagement session between the government, e-hailing platforms and driver representatives from smaller cities.
It believes this would ensure that policy adjustments are grounded in accurate field data rather than assumptions made from the Klang Valley perspective.
“When policies are designed with local realities in mind, everyone benefits, including drivers, passengers and the platforms.
“If fares remain unsustainably low, no amount of subsidy would solve the underlying problem.”
He also said the long-term wellbeing of e-hailing drivers depends not just on cost reduction measures such as fuel subsidies but also on income stability and fairness in the ecosystem.
“We truly appreciate the government’s attention through Budi95, but let’s not lose sight of what really matters – ensuring that drivers make a decent living from honest work.”
On Nov 4, Prime Minister Datuk Seri Anwar Ibrahim announced an expansion of the Ron95 petrol subsidy quota for active e-hailing and airport taxi drivers.
Under the revised scheme, drivers who travel less than 2,000km per month will maintain the base allocation of 300 litres every month, while those covering between 2,000 and 5,000km will qualify for 600 litres.
Drivers who exceed 5,000km monthly will now be eligible for up to 800 litres of subsidised fuel.
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