Malaysian government studying if e-hailing fares need regulation, says Transport Ministry

There are currently no provisions under current delivery license guidelines for a minimum fare or floor price mechanism for e-hailing drivers. According to the Deputy Transport Minister, the study will be based on findings and recommendations of the Land Public Transport Strategic Plan for the Klang Valley.

Martin Carvalho and Junaid Ibrahim

Martin Carvalho and Junaid Ibrahim

The Star

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Motorists are caught in a traffic jam on the Kuala Lumpur-Karak highway in Kuala Lumpur on November 17, 2022. PHOTO: AFP

July 25, 2025

KUALA LUMPUR – A study to determine if e-hailing fares should be regulated will be completed in five months, says Datuk Hasbi Habibollah.

“This will be based on the findings and recommendations of the Land Public Transport Strategic Plan for the Klang Valley which is expected to be completed this December,” said the Deputy Transport Minister.

He said there are currently no provisions under current delivery license guidelines for a minimum fare or floor price mechanism for e-hailing drivers.

“However, the government, through the E-hailing Services Guidelines 2018, fixed the ceiling for commission to be charged on taxis, car rental and luxury taxis drivers at 10%.

“For private car owners providing e-hailing, the commission is not more than 20% of the fare,” he said when wrapping up his ministerial replies when debating the Suhakam 2023 Report in Dewan Rakyat on Thursday (July 24).

He said that there is no fixed minimum fare for e-hailing because the industry is based on an open market gig economy model.

In December 2024, a group of 1,200 e-hailing drivers submitted a memorandum to the government seeking a minimum ride fare to be imposed.

They said the existing fare structure failed to adequately compensate drivers.

It was previously reported that up to 10 e-hailing drivers quit daily due to the price war between service providers.

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