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Multiple factors behind e-hailing fare surge

KUALA LUMPUR: The Hari Raya Aidilfitri festive season, the one-off RM10,000 Employees Provident Fund (EPF) and transit into Covid-19 endemicity are believed to be factors behind increased demand for e-hailing services.

Since the e-hailing industry is using the open market concept based on demand and supply, this has subsequently led to the surge in e-hailing fares.

This was the explanation from Malaysia e-Hailing Industry Workers Welfare Association chairman Jose Rizal on the likely increase in fares for e-hailing services.

"This concept is also transparent since passengers will be informed in advance of the fares before agreeing to use the service.

"Actually, the issue involving the surge in e-hailing fares should not arise since passengers have the option to agree or reject the fares as there are 32 e-hailing operators approved by the Land Public Transport Agency (APAD) since April this year," he said in a statement today.

Jose also advised e-hailing passengers to adopt an open mind approach and avoid being dependent on one or two service providers.

"As a good consumer, choose wisely (e-hailing service providers) according to your budget," he said.

He also hoped that the issue should be prolonged majority of those in the e-hailing industry are still recovering from the adverse economic impact brought about by the Covid-19 pandemic.

Earlier today, the Transport Ministry through APAD instructed e-hailing companies to provide an explanation over the recent surge in fares for their services.

Its minister Datuk Seri Dr Wee Ka Siong said he expects the e-hailing companies to explain the matter within the next two days.

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