Ridesharing firms Uber and GrabCar will soon be subject to new laws that would require them to adhere to certain conditions. – Reuters file pic, September 20, 2015.Ridesharing app operators such as Uber and GrabCar will soon be subjected to new regulations, reports The Star, to ensure compliance of service, comfort and safety.
Quoting Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Albar, the English daily said the suggested amendments to the Land Transport Act 2010 would not ban such services but would ensure operators adhered to certain conditions.
Despite opposition from taxi associations, Uber and GrabCar are not illegal but its drivers risk being arrested for using private vehicles to ferry passengers without public service vehicle licences.
Syed Hamid told The Star drivers were prohibited from carrying passengers in vehicles they bought using bank loans as this violated the hire-purchase agreement.
“The insurance coverage for vehicles ferrying passengers is also different from private vehicles.
“Once the laws are amended, we will be able to regulate these apps. If the drivers commit offences, the company can be charged in court. At present, we can’t do that.
“We will put in provisions whereby the bottom line will be that passengers get safer and better services,” he was quoted as saying.
Uber (Malaysia) general manager Leon Foong told The Star the service offered by the global ridesharing start up meant the government needs to review existing laws.
He said the Philippines and Mexico recently regulated Uber after realising the benefits of working together.
“We are very eager to work with the authorities to ensure we can help build the future of transportation for the public together,” he said, denying accusations that it is taking away business from taxi drivers.
“In fact, it is increasing the entire pie for the industry by creating tens of thousands of new work and entrepreneurship opportunities for Malaysians,” he was quoted as saying.
GrabTaxi marketing group vice-president Cheryl Goh also said the company is supportive of regulations in the industry.
“This is as long as it fulfils the objective of solving transportation problems, without compromising certain standards such as commuters’ safety and fair labour practices,” she was quoted as saying. – September 20, 2015.
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