KUALA LUMPUR: A taxi association has expressed concern over the Uber-Grab merger in Southeast Asia, saying that it might hasten the demise of the industry in the country.
Persatuan Pengusaha Teksi Bumiputera Malaysia (Perbumi) president Datuk Mohd Alias Abdul said only 15 per cent of the estimated 30,000 taxi drivers in Klang Valley "are still doing okay".
“The e-hailing industry had taken a heavy toll on the traditional taxi industry.
"The traditional taxi industry takes the hit as it can't raise the needed resources to compete,” he told the New Straits Times.
Mohd Alias said taxi drivers who are under the rental (pajak) model were the first to crumble.
Many had surrendered their vehicles to the companies which owned the taxis as the drivers could no longer earn enough.
He noted that at least 60 per cent of taxi drivers in the Klang Valley operate under the rental model, while only 30 per cent possess individual taxi licenses.
And even among those who own individual licenses, many had their taxi repossessed as they are unable to pay the monthly vehicle installments.
“I don’t think now is the time for the merger in Malaysia, as the e-hailing issue had not been fully addressed by legislators.
“There are still grey areas that should be cleared up prior to e-hailing services being given legal recognition as a mode of public transportation.” he added.
On Monday, the merger between Uber and Grab in Southeast Asia was announced.
Grab acquired Uber’s Southeast Asia operations in what is touted to be largest-ever deal of its kind in Southeast Asia.
Grab Malaysia’s country head Sean Goh said the merger strongly affirms its commitment to put the needs of its customers and driver-partners first.
He noted that Grab, formerly known as MyTeksi, began as a taxi hailing service to help improve the welfare of drivers.
"So taxi drivers are still an integral part of our eco-system.
"In some cities, we have introduced JustGrab - which is a service that combines the efficiencies of taxis and cars, but with a fixed fare, so passengers can get a ride with a shorter waiting time.
"We are always open and welcome to any taxi drivers / association who would like to join us as we continue to serve the people and providing efficient, safe and affordable transport options,” he said.
As of August last year, the rides on Grab Taxi have increased by 15 times, whilst JustGrab alone has increased by 30 times.
This means with the acquisition and consolidation of drivers under one app, more demand for rides in general can be expected, said Goh.