MoT demands explanation from e-hailing companies on exorbitant fares during peak hours

Following the complaints voiced on social media about the exorbitant fares during peak hours on e-hailing platforms, the Ministry of Transport (MoT) through the Land Public Transport Agency (APAD) has instructed certain e-hailing companies to explain the price surge.

Transport Minister, Datuk Seri Dr Wee Ka Siong told New Straits Times (NST) that he is expecting e-hailing companies to provide an explanation on the matter within the next two days.

He also revealed that MoT officers are currently going through the complaints raised by e-hailing users over the increase in fares.

“If the fare suddenly increased to RM70 from RM20 per trip previously, this is certainly a burden to the people.

“If this is so, the complaints raised by the people over the issue are relevant and warrant explanation from the e-hailing companies.

“Therefore, we want to hear from the e-hailing companies what is the reason behind the sudden surge in the fares. If the companies blamed it on congestion, then how come such an issue had never happened before (before the country was struck by Covid-19),” he said.

As for implementing a ceiling price regulation on e-hailing fares, Wee says that it is too early to take such measures.

He explains that to be fair to all parties MoT will only decide on whether to introduce a ceiling price after hearing the explanation from the e-hailing companies.

“After the e-hailing companies have provided their justification over the matter, the ministry will look into the next course of action whether there is a need to have more players, subsequently creating more competition in the market,” he said.

Also read: Fare too exorbitant during peak hours, passengers are opting for taxis over e-hailing rides