KUALA LUMPUR – The Land Public Transport Agency (Apad) has issued a termination notice to ride-hailing app inDrive for flouting guidelines, effective July 24, 2025.
Responding to Scoop, the agency said that the Letter of Revocation of Intermediation Business Licence (IBL) to ID Applications Sdn Bhd (inDrive) on April 24, for failing to adhere to licensing conditions and the Land Public Transport Act 2010 (Act 715).
However, Apad said that inDrive can appeal through the agency to raise the matter for the Transport Ministry’s consideration.
“The government takes seriously any infringement of IBL conditions and will take stern actions, including terminating the IBL.
“Therefore, all IBL holders are reminded to ensure their operational service quality remains at a satisfactory level and adheres to all legal provisions that are in effect,” the agency emphasised.
Apad’s statement confirmed Scoop's report on Friday, which said that Apad had served the Russian-based company with a termination notice and gave it three months to return the IBL due to alleged non-compliance with regulations introduced in 2019.
The IBL is a mandatory licence for all e-hailing operators under Malaysian law. Failure to comply may result in the company being forced to cease operations.
Sources told Scoop that the company had been issued several show-cause letters before the revocation notice, with authorities citing failures to ensure its drivers possessed valid Public Service Vehicle (PSV) and e-Hailing Vehicle Permit (eVP) licences.
Additionally, there were also mounting concerns over safety, following a rise in incidents involving drivers from the platform.
On the same day, Bernama reported the ride-sharing platform confirming that it had “proactively reached out to the relevant agencies to understand the situation better and take the necessary actions” to ensure it can continue operating in Malaysia.
“We will provide updates once we have received further clarity from the authorities,” the company said.
inDrive has since told its driver-partners to continue operating as usual.
In a message issued to its drivers, inDrive Malaysia said it is “currently in communication with the relevant regulatory authorities to seek further clarification regarding a recent development involving our operations”.
This marks the second enforcement action against a Russian-founded e-hailing service.
In 2023, Apad revoked Maxim’s licence for similar regulatory breaches, including allowing vehicles to operate without valid eVPs during enforcement exercises in Putrajaya and Kuantan.
inDrive, formerly known as inDriver, entered the Malaysian market in late 2021 and currently operates in Kuala Lumpur, Selangor, Penang and Johor Bahru.
Earlier this year, it announced plans to surpass 40,000 registered drivers nationwide by the end of 2025. – May 5, 2025
The post Apad confirms inDrive licence revoked effective July 24, but company can appeal appeared first on Scoop.
