Uber and GrabCar Drivers Are Now Required To Have Licenses To Operate
The Transport Ministry said the move would encourage healthy competition.
By John Lim — 26 Apr 2016, 12:44 PM
Drivers of ride-sharing services like Uber and Grabcar are now required to obtain a Public Service Vehicle (PSV) licence, as announced by the Transport Ministry on 23 April
A PSV licence allows drivers to operate a vehicle as a form of paid transportation.
Deputy Transport Minister Datuk Abdul Aziz Kaprawi said the move would provide healthy competition to the taxi industry
"We will review, and we will impose similar conditions to Uber and GrabCar as the ones on taxis by the Land Public Transport Commission (SPAD). Since Uber and GrabCar will operate under SPAD's regulations, this will also provide health competition to taxis,” he told The Malay Mail.
Earlier in January, Kaprawi also said that ride-sharing services will be required to purchase commercial insurance as regular taxis. However, that will only be implemented later this year after collecting feedback from the public.
“We want to regulate the industry so that these vehicles are safe for people to ride in. We also want to legalise the industry as the number of phone apps will continue to grow. Malaysians find these apps very convenient in terms of securing public transport," said Kaprawi.
Taxi groups have been accusing SPAD of not acting against ride-sharing services, which they said are operating illegally. Some taxi drivers have taken matters into their own hands, by harassing ride-sharing drivers and staging protests in downtown KL.
300 taxi drivers had gathered together to stage a protest against ride-sharing apps Uber and GrabCar in front of Pavilion Shopping Centre in Kuala Lumpur in March.