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UPDATED: Is UBER service illegal in Malaysia?

uberX-vehicles-and-partner-drivers

UPDATE:  SPAD Chief Tan Sri Syed Hamid clarifies that the UBER is indeed “open to allowing this service, as long as the services are provided by appropriately licensed vehicles and drivers.” 

The UBER mobile app transport service that offers private vehicles for hire and ride-sharing services has been announced as an illegal service by Land Public Transport Commission (SPAD).

According to SPAD Chairman Tan Sri Syed Hamid Albar, the use of private vehicles to carry fare-paying passengers is an offence under the Land Public Transport Act 2010. “This illegal service provided, could be colloquially referred to as kereta sapu” (a.k.a. pirate taxi).

One of the reasons why the services provided by UBER is illegal is because it does not comply with all the transport laws in Malaysia. Unlike regular taxis and other transportation services, UBER uses private vehicles as well as vehicles registered for hire-and-drive and limousine services. Furthermore, its drivers do not have a Public Service Vehicle (PSV) driving licence and this is an offence under the Road Transport Act 1987.

Syed Hamid said vehicles currently used by UBER are also not covered under commercial vehicle insurance and may also not go through Puspakom’s semi-annual checks. “We will not hesitate to take enforcement action on service providers who do not comply with the law,” he said, adding that they will also mete out appropriate punishment on vehicle owners who violate the Land Public Transport Act 2010.

“Under the current regulatory scheme, among the vehicles used by UBER, only licensed limousines are eligible to offer chauffeur-driven services, and since there are 839 licensed limousines nationwide which are eligible to offer this service, the supply of vehicles and drivers should therefore not be an issue for UBER,” he added.

UBER

First launched in  October 2013, the UBER’s UberBlack has proven to be a popular app amongst Malaysians, as earlier mentioned here. Customers can download the UBER app via their Android and iOS phones with the services charges from as low as RM2 for every kilometre with a starting charge of RM7 and minimum charge of RM13 for a trip. The company’s fares are fixed at;

  • RM68 for a one-way trip from Kuala Lumpur to Putrajaya
  • RM270 for premium transport service from KL to KLIA
  • RM80 for budget transport service from KL to KLIA
  • RM150 from KL to Genting Highlands, Pahang.

Those seeking an alternative to a regular taxi service could opt for this instead, where you’ll be chauffeured around town in a Toyota Camry, Honda Accord or even a Mercedes-Benz E-Class and BMW 7-Series.

Malaysia is not the only country that declared UBER as an illegal service. Other countries around the world and cities such as Miami, Berlin and Seoul have also banned it.

Source: The Sun Daily