PUTRAJAYA: The Ministry of Transport (MoT) does not want to intervene if possible on the issue of e-hailing fare floor price, and instead wants it to be determined by the market, said its Minister Anthony Loke.
Loke said his ministry is aware of the call of the E-hailing Drivers Association (EHO) which wanted the government to intervene on the fare issue, including the standardisation of fare rates between cities.
“We understand that they requested the government to set the floor price for e-hailing. So far, the proposal is still at the discussion stage and there is no decision yet,“ he said in a press conference after chairing the National Logistics Task Force (NLTF) meeting No 1/2023, here today.
Loke said MOT also understands the drivers’ hopes regarding the matter since drivers cannot drive at a loss and there are operational costs that need to be borne.
“But we need to understand that if there is a floor price, the fare price to users may increase higher so it is a consideration that needs to be taken into account too. So if we let the market determine the price, there is dynamic pricing between EHO, drivers and passengers,“ he said.
The media previously reported that the EHO urged the government to implement a floor fare rate on the transport service to protect the welfare of drivers.
It was reported that e-hailing drivers are increasingly desperate because fare rates are becoming more uncertain due to competition from several service operators and even though price competition benefits users, it instead burdens e-hailing drivers who have to bear the cost of fuel, tolls, maintenance and so on. - Bernama