42 e-hailing firms licensed to operate

PETALING JAYA: Is Grab a monopoly?

Not so, if one goes according to the list kept by the Land Public Transport Agency (APAD).

As of this month, other than Grab, there are 41 e-hailing companies authorised to operate in the country.

According to APAD, e-hailing services in Malaysia are regulated to ensure quality service including in terms of safety, and to create a level playing field between e-hailing services and taxi services.

The goal is to lessen the distinction between the two classes of vehicles, while upholding consumer interests.

Regulations on e-hailing services went into force on July 12 (but were deferred to Oct 12), with companies providing such services given one year to fulfill the conditions for obtaining a business licence during the transition period, said APAD on its website.

The conditions include making it mandatory for e-hailing drivers or taxi drivers providing e-hailing services to undergo training, as well as requiring the drivers to be vetted before the necessary licences can be issued to them by APAD and the Road Transport Department.

To apply for the licence, an e-hailing company has to be registered with the Companies Commission of Malaysia, and have a paid-up capital of at least RM100,000, and have a Malaysian director residing in Malaysia, among others.

Malaysia E-hailing Drivers Association (MeHDA) president Daryl Chong said the number of e-hailing companies operating in the country says little about the real situation of market competition on the ground.

“If we go by the number of companies, on paper there will be no element of monopoly, as the government allows other players to be in the market.

“But the monopoly part becomes apparent when a certain company disallows its drivers to place stickers or advertisements of other companies on their cars.

“Also, the inclusion of many one-sided clauses in its terms and conditions restrict drivers, whereas other companies don’t. Is this fair play?” he asked.

Likening the current e-hailing industry as a duel between “Goliath and many Davids”, Chong said there are currently less than 10 e-hailing companies out of the 42 that are actively battling it out to recruit more drivers and making their presence felt among passengers, including by having a price war.

“In the event of a price war, the strong and cash-rich ones will be able to throw in incentives to entice drivers to take up more jobs. “No doubt they are formidable, but will this deprive other companies of growth and be competitive on a level playing field in the long run? I think the government should be mindful of this, ” he said.

In creating a fair market in the gig economy, Chong also called on e-hailing companies to not restrict their drivers from working for multiple platforms, including not making them auto-accept jobs, especially when they are referred to as partners.