Malaysian taxi association calls for action against Uber

Update (28 August): Uber has published an official response on their blog to further clarify how they ensure the safety of passengers. According to them, safety measures are built straight into the app with features such as driver profiles, a section for real-time updates and feedback, and instant receipts with a summary of the route taken and fare breakdown. The piece also highlights two ways that the taxi service believes they are adding value to ecosystem: by “generating a new source of income for thousands of driver partners and providing expanded transport options for everyone”, and giving “car owners a high quality and extremely affordable reason to be a passenger rather than drive their own vehicles [which] helps reduce the number of vehicles on the congested roads of KL.” Lastly, they’ve invited the respective stakeholders to come together to discuss the situation.

The response was posted just moments after an article claimed that Uber was declared to be illegal by the Land Public Transport Commission’s (SPAD) chairman Tan Sri Syed Hamid Albar. This report, however, was found to be erroneous. In that short span of time, many Malaysian netizens have taken to social media to voice their support for Uber, as well as question SPAD’s judgement in this matter:

Uber has been stirring up opposition across the countries that it has launched in, from both incumbent taxi companies and governing bodies alike. Today, Uber faces a fresh round of resistance in Kuala Lumpur from the Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia, an association representing the local taxi industry.

According to a report by Bernama, Gabungan’s deputy president Datuk Mohd Alias Abdul has called on the Land Public Transport Commission (SPAD), the police, the Road Transport Department, and the Malaysian Communication and Multimedia Commission to take action against Uber, whom they believe has affected the income of taxi drivers in the Klang Valley since they launched there late last year.

Mohd Alias’ main issue with the US-based taxi service is that it fixes its fares based on its estimation on the distance and time of service, which does not take into account several other costs that local taxi drivers typically have to bear, such as periodical inspections, insurance premiums, and taxi permits and licenses.

Licensed taxi operators reportedly have to pay insurance premiums that are up to four times higher than private vehicles, according to Koperasi Pengangkutan Putrajaya dan Cyberjaya Berhad honorary-secretary Mohd Salleh Mat Zin. It is unsure whether Uber Malaysia provides any insurance coverage for their vehicles. In the US, Uber limousine drivers are covered by commercial insurance, according to a report by Fast Company.

Mohd Salleh adds that Uber’s appointment of local companies to manage the service on its behalf violates the transport law in the country, as these private vehicles may not have to undergo inspections at the local computerized vehicle inspection centre. In the event of an accident, these oversights would cause many problems for the passengers involved.

With the safety of passengers and the income of local taxi drivers in question, the stakes are high, though the government has yet to step in to make any changes.

Mike Brown, regional general manager of Uber, has responded to Tech in Asia’s inquiry with an assurance that safety is their number one priority – all Uber partners and their vehicles undergo rigorous background checks and thorough inspections. “When you ride with Uber, you know that you’re riding with a safe and highly qualified driver with full insurance coverage,” he says, without specifying who exactly is providing the coverage.

See: Uber secretly arrives in Johor Bahru with free rides in hand

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Malaysian taxi association calls for action against Uber