Govt To Let Market Forces Determine E Hailing Fare
E-hailing drivers were getting desperate due to uncertain fare rates.PUTRAJAYA: The transport ministry prefers not to intervene and instead, let the market determine the fares for e-hailing services.
Minister Loke Siew Fook said his ministry was aware of the call by the E-hailing Drivers Association (EHO) who 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.
Loke said the ministry was aware of the drivers’ hopes regarding the matter since they could not be driving at a loss and there were also operational costs to be considered.
“But we need to understand that if there is a floor price, the fares for users may increase 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 involving EHO, drivers and passengers,” he said.
The media previously reported that the association had urged the government to implement a floor price to protect the welfare of drivers.
It was reported that e-hailing drivers were increasingly desperate because fare rates were becoming more uncertain due to competition from several service operators. Although price competition benefits users, it places a burden on e-hailing drivers who have to bear the cost of fuel, tolls, maintenance and other expenses. - FMT
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