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Taxi drivers allegedly giving up due to fierce competition

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According to a report by The Sun Daily, it was reported that as many as 10,000 taxi drivers in the Klang Valley might have returned their taxis to their particular companies.

The move came even after numerous taxi companies tried to persuade taxi drivers with discounts on rental rates and downpayments. For example, downpayment to lease a budget taxi has dropped from RM8,000 and a guarantor to RM2,500 without a guarantor. Furthermore, daily rentals has been slashed from RM55 to RM40 for a Proton Persona.

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Datuk Mohd Alias Abdul, Peninsular Bumiputra Taxi Operators Association (Perbumi) president told The Sun, “Most taxi operators and companies have reported a high number of vehicles being returned. We are not talking about just old vehicles, but even new ones.

“Between 10% and 30% of the total number of taxis (35,000) in the Klang Valley have been returned to their operators in the past three to four weeks,” he further added. He claimed that the introduction of ride-sharing platforms like Uber and Grab reduced taxi drivers’ income by 40%.

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Datuk Mohd Alias Abdul also mentioned that there were cases of taxis repossessed due to outstanding rental payment which amounted to several months.

New Supercab Sdn Bhd has also confirmed that over the past few months they’ve seen a surge in taxi drivers returning their taxis plus vehicles repossessed due to payment issues.

The Sun did a quick check at New Supercab Sdn Bhd and found roughly 200 taxis parked in the compound and a nearby open field.

Big Blue Taxi Services on the other hand, claimed that they did not have an issue with taxi drivers returning their vehicles. The boss, Datuk Shamsubahrin Ismail said that they operate as a premium taxi service and only budget taxi drivers are affected.

Via: The Sun Daily