Cabbies won’t survive beyond 2018: Expert

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).