PETALING JAYA: E-hailing services have significantly reshaped public transport in Malaysia over the past decade, offering passengers flexible and convenient
travel alternatives.
However, recent fare hikes and regulatory changes have sparked debates over the affordability for passengers and fairness for drivers.
Universiti Teknologi Mara Institute of Transport (Legal Services and Quality) head Dr Siti Ayu Jalil said rising operational costs, particularly petrol prices, are key factors driving fare increases.
“Due to rising fuel costs and adjustments to fare structures, such as increases in base charges and surcharges, have been necessary.
This has led to a decline in the number of e-hailing drivers since the Covid-19 pandemic, which has affected service availability and further pushed up fares.”
She said globally, price hikes often align with increases in crude oil prices, adding that government regulations introduced in 2019, which require drivers to secure a Public Service Vehicle (PSV) licence, insurance, annual vehicle inspections and medical checkups have further contributed to the declining number of drivers.
She also said other factors include distance, traffic congestion and weather.
“Despite the challenges, e-hailing remains a popular choice due to its convenience and seamless booking experience. Shared ride options, which allow passengers to split costs, have also contributed to the demand.”
Siti Ayu said the increasing traffic congestion has further reinforced dependence on e-hailing services.
She emphasised the need for government oversight to prevent excessive fare hikes
and ensure fairness, adding that hikes could harm urban mobility and pointed out that Budget 2025 includes plans to enhance public transport as a long-term solution.
E-hailing drivers have also voiced concerns that fare hikes have not translated into better earnings.
Malaysian eHailing Alliances chief activist Jose Rizal said many drivers are struggling due to escalating operational costs.
“Between fuel prices, vehicle maintenance, insurance and licensing fees, a significant portion of our income is spent before we even start making a profit.
Despite higher fares, our earnings continue to shrink.”
He said although drivers receive up to 80% of passenger fares, commissions, unpaid waiting times and repositioning costs eat into their actual earnings.
Jose Rizal called for stronger government enforcement and greater transparency from ride-hailing companies.
“We are advocating for a gig or platform workers act to ensure fair rights for drivers, including protection against unfair deactivation and access to social security.”
Maxim e-hailing service provider director Mohd Hazwan Musley said the company adjusts fares based on market analysis to balance affordability, passenger demand and driver availability.
“Maxim only applies peak rates when ride requests exceed the number of available drivers. This encourages more drivers to work during peak periods and in high-demand areas, minimising prolonged waiting times for users,” he said, adding that internal data revealed that the average ride cost in 2024 increased by less than RM1, aligning with annual inflation and rising living costs.
Mohd Hazwan also said as part of its corporate governance, Maxim always displayed estimated fares upfront, calculated based on optimal route mileage.
