The “Carmageddon†is coming, expect higher fares for e-hailing rides after 12 July
This Friday, 12th July 2019, marks the deadline for e-hailing drivers to get their Public Service Vehicle (PSV) licence and possibly the last day of (kinda) reasonable fares.
Yep, be prepared to complain even more about waiting 5,000 years for a ride and then complaining some more about the price.
The Star has reported that the number of drivers is expected to drop by Friday while Malaysian E-hailing Drivers Association (MeHDA) has predicted up to a 50% increase in fares.
“We will see fewer drivers when the deadline comes because many part-timers are opting out; plus many other drivers are still not PSV-ready.
Daryl Chong, President of MeHDA via The Star
As a result of the decrease in drivers, Daryl said that passengers will have to wait longer for a ride because the distance between them and the drivers will be much further.
The PSV license is part of a compulsory set of regulations set by the Malaysian Transport Ministry for e-hailing drivers under Section 56 of the Road Transport Act 1987.
To obtain the license, drivers must attend a 6-hour driving course and sit for an exam. Cars older than 3 years old must also undergo annual vehicle inspections at Puspakom.
As you can see, it’s pretty troublesome for part-time drivers to go through all that PLUS fork out at least RM 115 a year for the license alone. (Nothing is free in this world yo.)
The Land Public Transport Agency (APAD) states that Malaysia has around 167,000 e-hailing drivers.
However, Transport Ministry revealed last week that only 16,338 drivers had signed up for the PSV test.
That’s barely 10% of drivers!
According to Daryl, e-hailing companies currently use an algorithm to adjust the price based on supply and demand. The math is simple:
Equation 1: High Supply + Low Demand = Lower Fare
Equation 2: Low Supply + High Demand = Higher Fare
So, with fewer drivers available, we’re looking at equation no 2 being our future.
Arif Asyraf Ali, Grab Drivers Malaysia Association president, gives a far more chilling prediction of e-hailing’s future, calling it the “Carmageddon†as the industry comes to a standstill with longer waiting time and higher fares.
So, are you ready for the “Carmageddon� Best to start memorising the bus schedule, just in case.
