E-Hailing in Malaysia: Healthy Competition Must Be Matched with Strict Compliance

The e-hailing industry in Malaysia is witnessing an increasingly intense level of competition, particularly among platforms such as Grab, inDrive, and Maxim. However, beneath the surface of low fare strategies and ease of access for passengers lies a growing concern regarding safety, regulatory compliance, and fairness to drivers.

A recent report by Penghantar Malaysia revealed that some drivers operating under inDrive and Maxim continue to provide services without possessing a valid Public Service Vehicle (PSV) license, without a legitimate E-hailing Vehicle Permit (EVP), and in vehicles exceeding 20 years of age that have not undergone regular inspections by PUSPAKOM.

More alarmingly, there are also instances where no e-hailing insurance coverage is provided for passengers.
Conversely, Grab is reported to comply fully with all regulations mandated by the Ministry of Transport (MOT) and the Land Public Transport Agency (APAD). Nevertheless, the financial burden of compliance—including license renewals, insurance premiums, and vehicle inspections—falls entirely upon the drivers. Amid rising operational costs, drivers are further disadvantaged by fare reductions implemented to compete with non-compliant platforms, while commission rates charged by the platform remain unchanged.

Malaysia's existing legislation, namely the Land Public Transport Act 2010 (Act 715), clearly outlines the requirements for licensing, compliance, and enforcement. Violations of these provisions may result in punitive actions, including the revocation of operator licenses.

As concerned users and responsible citizens, we must advocate for fair and healthy competition—yet not at the expense of safety and legal compliance. All e-hailing operators (EHOs) must be held to the same regulatory standards and operate on a level playing field established by law.

E-hailing should not be reduced to a matter of convenience and affordability alone—it is fundamentally about safety and public trust. The future of this industry must be grounded in compliance and professionalism, not merely a race to the lowest fare.

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