Cab­bies won’t sur­vive be­yond 2018: Ex­pert

The Sun (Malaysia) - - NEWS WITH­OUT BOR­DERS -

the big taxi op­er­a­tors and the whole in­dus­try, as there will be some 20,000 aban­doned taxis in the com­ing months. Think about loss of in­come by taxi driv­ers and also taxi op­er­a­tors hav­ing to ser­vice bank loans and other costs,” he said.

Quot­ing his com­pany, Abd Razak said around 20 taxis had been re­turned by cab­bies since July and there had been no tak­ers for 60 new taxis since early this year.

Checks by theSun at sev­eral cab com­pany de­pots in Rawang, Se­layang, Ke­pong, Am­pang, Pan­dan, Seri Kem­ban­gan and Shah Alam re­vealed that around 1,600 taxis are parked within their premises.

A man­ager at one of the ma­jor com­pa­nies, Up­tow­nace Sdn Bhd, who re­quested anonymity, urged the me­dia to high­light the un­level play­ing field be­tween taxis and ride-hail­ing ser­vices.

“Please ask SPAD what it is do­ing by al­low­ing Uber and Grab to op­er­ate il­le­gally, with­out Pus­pakom in­spec­tion and other things,” he said.

A trans­port ex­pert reck­oned many taxi op­er­a­tors won’t sur­vive be­yond 2018 if ride­hail­ing com­pa­nies con­tinue to of­fer lower fares.

“Cheaper fare is the pri­mary rea­son many pas­sen­gers are ditch­ing taxis and switch­ing to Grab or Uber. It is al­ready af­fect­ing cab­bies and taxi op­er­a­tors badly,” said Malaysian As­so­ci­a­tion of Tour and Travel Agents li­ai­son man­ager Y.S. Chan.

He ex­plained it is not pos­si­ble for taxi driv­ers to lower fares be­cause of the cost fac­tor, “while Uber and Grab are only act­ing as match­mak­ers us­ing other peo­ple’s cars”.

Last week, ef­fec­tive Tues­day, Grab Malaysia an­nounced a fare cut from RM1.30 per kilo­me­tre to RM1.10 in the Klang Val­ley dur­ing week­ends (all day) and week­days (non-peak hours).

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