No plans to regulate Grab, e-hailing prices; introducing a floor price could increase fares – Anthony Loke

Transport minister Anthony Loke has said there are no immediate plans to regulate e-hailing fares in the country, including setting a floor price. As reported by The Star, Loke explained in the Dewan Rakyat that the setting of a floor price is complicated process that needs to take into consideration the interests of both drivers and passengers.

“If the floor price is set, then the fare charges for the users will possibly increase as well. When that happens, the MPs will come back to the August Hall and raise an issue about the rising fares. There are variables like traffic congestion, weather, distance, time as well as demand and supply which takes into account,” said Loke.

“We should look into dynamic pricing mechanisms which rely on supply and demand therefore the fare rate will be flexible based on real-time factors,” he added. Loke was replying to a Datuk Larry Sng, who asked the transport ministry to state the outcome of its meeting with e-hailing companies, particularly the review of fares that are reportedly too low and affected gig economy workers.

The transport minister revealed the Land Public Transport Agency (APAD) had met with stakeholders from the e-hailing industry, with companies saying it encouraged its partners to operate in areas with high demand where they are offered incentives.

“For example, one e-hailing service provider is informing their partners one week in advance on incentives through their platforms or application. Such a move can assist the partners or drivers to plan their operating times and to meet their income target,” Loke said.

What are your thoughts on the matter? Should a floor price be introduced for e-hailing services to benefit gig economy workers? Share your thoughts with us in the comments below.

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