KUALA LUMPUR: The government has no immediate plans to regulate e-hailing fares, the Dewan Rakyat was told today.
This includes setting the floor price per trip.
Transport Ministry Anthony Loke said that setting the e-hailing floor price is a complex task that requires finding a balance between the needs of drivers and users.
"If the floor price is set (at a certain rate), there is a possibility that the users' fares might increase as well.
"If that happens, then Yang Berhormat will come back to this Dewan Rakyat and raise an issue about how the fares have increased.
"We should look at the dynamic pricing mechanism, that relies on supply and demand.
"Hence, fare prices are flexible based on real-time factors," he said in response to Datuk Larry Sng (PBM-Julau).
Sng asked about the ministry's follow-up action after meeting with several e-hailing companies, especially concerning the review of fares that are said to be too low and adversely affecting workers in the gig economy sector.
Loke added variables like traffic congestion, weather, distance, time, as well as demand and supply must also be taken into account.
Meanwhile, Loke said the Land Public Transport Agency (APAD) has engaged in discussions with key players in the e-hailing industry.
"The feedback received includes the company encouraging its driver-partners to operate in high-demand areas through incentives offered individually to meet current demand.
"For example, one e-hailing service provider is alerting drivers a week in advance on incentives on its application.
"The move can help the drivers to plan suitable operating times, to meet the target income," he said.