END of road?

The Sun (Malaysia) - - FRONT PAGE - BY SHAHRIM TAMRIN

PE­TAL­ING J AYA: The con­ven­tional taxi in­dus­try may col­lapse in the next 16 months due t o s t i f f com­pe­ti­tion from ride-hail­ing com­pa­nies Grab and Uber, which charge cheaper fares and en­joy other al­leged un­fair ad­van­tages.

In­dus­try in­sid­ers said taxi com­pa­nies are brac­ing for up to a RM60 mil­lion loss in rev­enue by the end of the year if the Land Pub­lic Trans­port Com­mis­sion (SPAD) does not in­ter­vene to save the RM230 mil­lion in­dus­try.

A bu­mipu­tra taxi op­er­a­tor said the in­dus­try is ex­pe­ri­enc­ing a rapid fall, with a grow­ing num­ber of new taxis yet to be leased and ex­ist­ing taxis re­turned by cab­bies un­will­ing to con­tinue driv­ing.

“On av­er­age, there has been be­tween RM15 mil­lion and RM20 mil­lion losses monthly across the in­dus­try. The busi­ness was bad post-GST and with Uber and Grab in the pic­ture, we are suf­fer­ing even more,” said Av­enue Drive Sdn Bhd man­ag­ing di­rec­tor Abd Razak Abd Aziz.

“Take for ex­am­ple, a new Pro­ton Per­sona taxi at a cost of RM50,000 each. Imag­ine the losses if an op­er­a­tor can­not lease out 50 Per­sona taxis or has them re­turned (by the driv­ers),” he said.

“RM2.5 mil­lion lost is just for one small com­pany. Think about

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