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UBER Must Ensure all Services Comply with Malaysian Laws

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UBER is an Internet and smartphone application, operating in 44 countries worldwide, that offers a paid ride-sharing service using private cars as well as vehicles registered for hire-and-drive and limousine services.The service, known colloquially as ‘kereta sapu’, was introduced to KL last year and has become extremely popular,seeming to fill a gap in the market for passengers who cannot depend on regular taxis. However, according to SPAD, the Land Public Transport Commission, the private and hire-and-drive vehicles used for this service are illegal.

According to road transport laws in Malaysia, private vehicles may not carry paying passengers, and using hire-and-drive vehicles as taxis is illegal.

Furthermore, it is believed some of UBER’s drivers are not covered under commercial vehicle insurance or in possession of a Public Service Vehicle driving license; an offence under the Roast Transport Act 1987. This may also be the case for UBER drivers operating in other countries; cities such as Miami, Berlin and Seoul have already banned the service. Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia (Gabungan) had called on SPAD to take action against the company.

Contrary to reports by many media channels, the service as a whole has not been declared as illegal.The limousine service offered by UBER is legitimate. “Under the current regulatory scheme, among the vehicles used by UBER, only licensed limousines are eligible to offer chauffeur-driven services,” SPAD’s Chairman, Tan Sri Syed Hamid Albar told press.

SPAD Tread Carefully

SPAD recognizes that UBER is an excellent and worthwhile service. Many Ministers are said to use the app. “As the regulator in charge of Malaysia’s land public transport, we take compliance with the law, local rules and regulations very seriously… And although we like any improvements to the public transportation system, it must be within the system. We cannot have them operating outside it”, commented Mr Syed Hamid.

After thorough investigation, UBER has been allowed to continue operating in Malaysia, provided its vehicles and drivers comply with local laws and regulation. SPAD have warned the company to stop using their hire-and-drive vehicles for taxi services.

UBER’s Regional General Manager, Mike Brown, ensures that “all UBER partners and their vehicles undergo a rigorous background check and thorough inspection, so when you ride with UBER, you know that you’re riding with a safe and highly qualified driver with full insurance coverage. In a nutshell, UBER provides a high quality, safe, reliable and affordable transportation option that also benefits riders, driver partners and the city. It’s a win-win option for everyone”.

Taxi Drivers Concerned for their Welfare

More than 10,000 taxi drivers from across Europe took to the streets in June to protest against UBER. Drivers in the Klang Valley are equally riled by the service, which they say has affected their income.

Regular UBER user, K. Anand responded to taxi drivers’ concerns, saying “if the taxi services are so good, why should they worry about people using UBER?” K. Anand is very satisfied with the UBER service and praised their good pick-up time. “You don’t hear excuses such as ‘we don’t go there’, and ‘it’s jam at this time’ and all that you hear from normal taxis,” he added

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Pricing in KL

UBER have reportedly been charging RM2/km, with a starting charge of RM7 and a minimum charge of RM13 per journey. There are fixed prices for longer trips; ‘budget’ one-way transport to KLIA is set at a great-value of RM80.

The service is ‘cashless’; customers are charged to an online account after the journey has been completed.

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