THERE are no immediate plans to set a floor price for ehailing services as doing so may lead to a fare increase, says Anthony Loke.
The Transport Minister described the process of setting a floor price as complicated, adding that both drivers and passengers’ interest must be considered.
“If a floor price is set, then fares will possibly increase. When that happens, the MPs will come back to the august House and raise issues about the rising fares.
“There are variables like traffic congestion, weather, distance, time, as well as demand and supply which must be taken into account.
“We should look into a dynamic pricing mechanism that relies on supply and demand.
“Therefore, the fare rate will be flexible based on real-time factors,” he told the Dewan Rakyat yesterday.
Loke was replying to Datuk Larry Sng (PBM-Julau) who had asked on the outcome of the ministry’s meeting with ehailing companies on a fare review, reportedly to be too low and affecting gig economy workers.
The minister said the Land Public Transport Agency (Apad) had met with stakeholders from the ehailing industry.
He said companies had encouraged their partners to operate in high-demand areas with incentives offered to meet the demand.
“For example, one ehailing service provider is informing its partners one week in advance on incentives through its platform or app.
“This move can assist partners or drivers to plan their operating times and to meet their income target,” he added.
