What Everyone Needs To Know About E Hailing Fares

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From Wan Agyl Wan Hassan
The call for a floor price in Malaysia’s e-hailing industry is a cry for fairness from drivers who feel they’re constantly shortchanged.
It’s not hard to see why. They deal with rising fuel costs, vehicle wear and tear, and the sheer frustration of long hours on the road for fares that sometimes barely cover their expenses.
The idea of setting a minimum fare, between RM1.10 and RM1.30 per kilometre with an additional 45 sen to 65 sen per minute, sounds like a practical solution.
But let’s not kid ourselves. The floor price isn’t a magic wand that will fix everything. In fact, it may even create more problems down the line.
Sure, a floor price can help to stabilise driver incomes and put an end to the price wars that have companies undercutting each other to woo passengers.
On paper, it looks like a fair deal. But let’s take a step back.
What happens when fares go up?
Malaysians are sensitive to prices, especially with the cost of living skyrocketing.
If fares become too high, many users may start looking for alternatives — from public transport to using their own cars, or simply cutting back on travel altogether.
So, while individual fares may rise, the number of trips may drop. The drivers we’re trying to help may then end up earning less overall.
Then there’s the issue of how this will affect the industry.
E-hailing thrives because of its dynamic pricing — fares that rise and fall based on demand.
When it rains, during peak hours, or when everyone is rushing to “balik kampung”, this flexibility in pricing can help to moderate demand so that there are enough drivers on the road.
If we impose a fixed floor price, it can mess up this balance. Longer wait times, fewer available rides, and frustrated passengers can become the new normal.
That’s not a win for anyone.
And what about the smaller e-hailing players?
Companies like Grab dominate the market, and they have the resources to survive these changes.
But the smaller guys? They may not be able to keep up, and a floor price can drive them out completely. That leaves passengers with even fewer choices and gives the big players even tighter control.
Is that what we want? A system where drivers and passengers have no real alternatives?
The flexibility that makes e-hailing attractive for part-time drivers may also take a hit.
Many drivers rely on this gig for extra income, working when it suits them or during peak hours when they can earn the most.
If we introduce a floor price, we risk taking away that flexibility and making the platform less appealing for these part-timers.
Instead of rushing into a floor price, let’s explore better solutions.
For one, we can look at time-based pricing that takes traffic jams into account or better algorithms to factor in how far a driver has to travel to pick someone up.
The government can step in with subsidies for fuel or car maintenance — simple steps that will directly reduce costs for the drivers.
And let’s not forget transparency. Many drivers don’t even know how fares are calculated or why commissions are so high. If companies are clearer about these things, it may ease some of the tension.
The government also needs to play a bigger role.
Right now, it feels like they’re sitting on the sidelines, letting the market sort itself out.
That’s not good enough. We need a proper regulatory framework that looks at the big picture — driver welfare, market competition, consumer rights, and even public transport integration.
Why not give smaller e-hailing companies tax breaks or other incentives to help them compete?
And for drivers, how about targeted perks during peak hours to ensure there are enough of them on the road?
At the end of the day, the push for a floor price isn’t just about fares —it’s about fairness.
It’s about drivers feeling respected and passengers getting reliable, affordable services.
But let’s not go for quick fixes that sound good but may backfire.
We need to think long-term, come up with real solutions, and build an e-hailing system that works for everyone.
The government and industry players need to step up because the rakyat deserves better. This is about more than just rides — it’s about making sure Malaysia moves forward together.
TO BE CONTINUED
 - FMT
Wan Agyl Wan Hassan is the founder of MY Mobility Vision, a transport think tank. He is also an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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