Uber, the alternative solution to KL’s taxi woes

UberX could revolutionise how people in Kuala Lumpur move around when deprived of their cars. – Pic by Uber, August 8, 2014.There is a new ride in town and it could be a game changer for thousands of commuters who have had to put up with poor, or worse, service from taxis in the Klang Valley.

The alternative transport service has been around for the past six months, but a new product has been rolled out as of yesterday that could revolutionise how people move around when deprived of their own set of wheels.

UberX, the latest “public transport” product from Uber.com, is aimed at meeting the needs of commuters who wish to travel point-to-point, without worrying about the issues that arise when trying to get a taxi.

At the launch in Bangsar South yesterday, Uber demonstrated the ease with which they are able to provide economy model cars, including Perodua MyVi, Toyota Vios and Nissan Almera, with a driver for a single UberX journey.

Aside from UberX, the other product available in Malaysia is called UberBLACK, which is a premium car-and-driver service, with a medium to high-end car range, including Honda CR-V, Nissan Teana, Peugeot 508, Toyota Alphard and Toyota Camry.

However, there is a misconception about Uber that was quickly cleared up by Chan Park, the head of Asia Pacific Expansion at Uber, who was down from the US for the launch.

“Contrary to popular belief, Uber is not a transport provider. We are just a technology company providing an app solution to help match a customer with a licensed transport provider,” he said when asked how does Uber meet regulatory requirements in the cities where it operates.

Likening Uber to online services such as Expedia and Agoda, Park (pic, right) said that in every city where the app is available, Uber has worked with existing and new licensed transport providers to match the needs of its registered customers.

“These licensed transport providers may be single-car operators or a company with as many as 100 cars. It is their responsibility to provide the car and the drivers for our customers, as they are regulated by the relevant authority, such as the Land Public Transport Commission in Malaysia.

“We facilitate the technology, communication and payment system to ensure the transaction is successful and all three key elements, the transport provider, the drivers and our registered customers, are connected seamlessly,” he said.

Registered users have to enter a valid credit card during the one-time sign-up process to enable the card to be charged for every trip automatically, thus adding to the convenience of the service.

Asked if there are any risks to its customers, Park said Uber prides itself on providing “accountability and reliability in transport” that many commuters are unable to get with their usual taxi services in the city.

“Our drivers are vetted by our partners, the transport providers, and every car is provided with the technology to track and provide feedback in a real-time environment for our customers and/or their loved ones to know the route taken by the vehicles and its exact location at any point of time, via GPS,” he said.

There are currently a few companies and single-vehicle operators who are working with Uber in Malaysia. These include TrupCar, Extreme and PRAC.

As of early July, the Uber service was linked to a total of about 50 cars for the premium UberBLACK product, but that has increased since.

The fleet of available cars is expected to grow with the launch of UberX, a product that is sometimes even cheaper than taking regular taxis in the Klang Valley. That is because the base rate and minimum fare payable for UberX is RM1.50 and RM2.50, respectively, while the per kilometre charge is RM0.55 and per minute rate is RM0.20.

The Malaysian Insider has also discovered that some Uber members are using its services beyond the original intention, that is to pick up the passenger with the registered account.

A regular user said that she uses Uber to have a car with the driver pick up her children or her parents from a location that is different to hers.

“I can have the car sent to pick up my parents or children, and take them to any location, without having to worry about them trying to get a taxi or doing the booking themselves,” said the user who only gave her name as Amanda.

She added that she also uses Uber as a “courier or despatch service” if she needs to send or collect some items or documents, without the hassle of having to accompany the driver, as she can “track the car throughout the journey”.

Asked about the challenges that Uber faces in some of the cities where it has a presence, Park said that there were some cities, especially outside the US, where the demand has grown too fast for them to meet supply, but that is being handled in a better way in the newer markets.

In the Malaysian context, the question of overcoming the issue of “taxi monopolies” in locations such as KL Sentral, KLCC, KLIA and taxi stands outside certain LRT stations did not seem to perturb Park.

“Picking up our customers in cars that are not marked, Uber just lives up to its slogan as ‘Everyone’s Private Driver’, and it should not affect customers or the drivers at the pick-up point,” he said.

UberBLACK and UberX are both available 24 hours, and is interchangeable in its usage by registered customers, depending on how much the customer wants to pay for the journey, or how many passengers are travelling on the journey.

One additional benefit provided by Uber is that there is no 50% surcharge for the midnight to 7am trip, as is the case with regular or executive taxis.

Park said that he expects the demand for Uber’s products to grow rapidly in the months to come as commuters realise the convenience it provides.

Finally, if one wishes to bypass the coupon systems and other forms of legal or rogue “taxi monopolies”, which have “exclusive control” outside malls, transport hubs, LRT stations and airports, then UberX could just be the solution for you.

The fare is even likely to be a similar or lower amount compared with the charge for using a regular taxi… and it is all cashless. – August 8, 2014.