Reform taxi services instead of going after Uber, SPAD told

Malaysia’s taxi services have consistently been rated as one of the worst in the world with accusations of overcharging and refusal to use meters. – The Malaysian Insider file pic, August 29, 2014.Independent think tank Institute for Democracy and Economic Affairs (IDEAS) has called on transport authorities to focus their effort on reforming taxi services in Kuala Lumpur instead of going after Uber, which has benefited the people.

Its chief executive officer, Wan Saiful Wan Jan, said that the government should "celebrate" the arrival of Uber in Malaysia – a tech company offering transport through a smartphone application – and facilitate its growth, as it has proven to provide better services and at a cheaper price than regular taxis.

"Instead of celebrating the arrival of a service that consumers want, it sounds as if SPAD (Land Public Transport Commission) is more interested in protecting those with vested interest who monopolise taxi permits," he said in a statement today.

Wan Saiful said there were three issues brought up by Uber critics – public safety, competition with existing taxis, and compliance with Malaysian regulatory framework.

"I recognise that regulations are necessary to ensure public safety. More importantly, we know that consumers will ditch Uber if they are worried about their safety.

"The fact that many are opting for Uber even when it is not regulated says a lot about the current level of public trust in the safety of the regulated taxi services. Why are the authorities looking at Uber when public sentiment indicates where their attention should be directed at if they really want to ensure public safety?"

Speaking about the competition with regular taxi services, Wan Saiful said the increased competition that Uber brought about would be beneficial to consumers, which should be encouraged in Malaysia.

"It would be ridiculous to declare Uber illegal when its popularity is the result of it being perceived as providing better services and at lower costs.

"The authorities should champion consumers by facilitating Uber’s growth. It should not protect connected businessmen who monopolise taxi permits because they obviously have vested interests.

"The solution is not to ban Uber. Instead, we must improve taxi services to match Uber's standards.”

SPAD had previously said there have been several issues with Uber, such as using private vehicles to carry fare-paying passengers, which is an offence under the Land Public Transport Act 2010.

Some of its drivers did not have a public service vehicle (PSV) driving licence, which is an offence under the Road Transport Act 1987, it said.

However, the commission also said that it was ready to allow Uber's service as long as the services were provided by licensed vehicles and drivers.

Its chairman, Tan Sri Syed Hamid Albar, said the issue had to be looked into carefully, acknowledging that Uber’s service was popular in Malaysia.

Wan Saiful said Uber showed that the existing framework for governing taxis was outdated, adding that Syed Hamid could be hailed a "hero" if the latter took the opportunity to revamp the public transport laws.

"Instead of holding on to regulations that are anti-competitive and monopolistic, SPAD chairman (Syed Hamid) can become a hero if he takes this opportunity to revamp the rules so that taxi drivers can own their cars and permits, keep the profits and consumers can get better quality at lower prices.

"But they can only do it if they shift their attention from protecting those with vested interests to championing the welfare of taxi drivers and consumers," he added.

Earlier today, Uber said it was willing to discuss with government officials about transport issues plaguing the Klang Valley and about how the innovation could transform public transport in Kuala Lumpur. – August 29, 2014.