No immediate plans to regulate e-hailing fares, including setting floor price per trip, says Loke

KUALA LUMPUR: There are no immediate plans to regulate the e-hailing fares including setting the floor price per trip, says Anthony Loke.

The Transport Minister told Dewan Rakyat that the proposal to set the e-hailing floor price would be a complicated process that must consider both drivers and passengers interest.

"If the floor price is set, then the fare charges for the users will possibly increase as well. When that happens, the MPs will come back to the August Hall and raise an issue about the rising fares.

"There are variables like traffic congestion, weather, distance, time, as well as demand and supply which takes into account.

"We should look into dynamic pricing mechanisms which rely on supply and demand therefore the fare rate will be flexible based on real-time factors," he said on Tuesday (Nov 14).

Loke was replying to Datuk Larry Sng (PBM-Julau) who asked the ministry to state the outcome of the ministry’s meeting with e-hailing companies with emphasis on the review of fares that is reportedly too low which affected the gig economy workers.

Loke, who is also Seremban MP, said the Land Public Transport Agency (APAD) had met with stakeholders from the e-hailing industry.

He said that feedback from the industry included companies that had encouraged its partners to operate in areas with high-demand where they are offered incentives to meet the current demand.

"For example, one e-hailing service provider is informing their partners one week in advance on incentives through their platforms or application.

"Such a move can assist the partners or drivers to plan their operating times and to meet their income target," he added.