Rosman told FMT that the drivers had made the switch despite their having to fork out a lot more money to rent private cars than the amounts they used to pay to rent taxis.
He said local taxi companies had started renting out private cars to taxi drivers who are eager to make the switch.
“They charge the former taxi drivers RM1,000 rental weekly for the cars, whereas the rental for regular taxis is only RM350 a week,” he said. “Despite the RM650 hike, more and more drivers are ditching taxis for Uber and Grab. They feel they can earn more from Uber and Grab customers.”
He said taxi companies started renting out private cars soon after the government legalised e-hailing services.
“These companies know they need to survive. Those who give up driving taxis will be informed by the companies that there are private cars for rental. They will even be taken to Uber and Grab offices to be registered. It is all part of business continuity.”
The government announced the legalisation of Uber and Grab in August this year. As part of industry regulation, e-hailing drivers are required to apply for a “driver’s card” issued by the Land Public Transport Commission (SPAD) and to have their vehicles tested for roadworthiness by Puspakom, the national vehicle inspection authority.
According to Rosman, taxi companies are also relaxing rules for their drivers, such as by allowing them to pay rentals “as and when” they have money to pay.
“Those days, if a driver does not pay taxi rental for a week, the car will be taken away from him,” he said. “Now even if they do not pay for four months, the companies allow them to keep the taxis as long as they pay a minimal amount.”
Rosman, however, expressed concern that the increasing popularity of e-hailing services might have a negative impact on the lives of drivers.
“Drivers have to compete with thousands of others to make money to pay the car rent. They have to work longer hours just to be able to pay the rent. They will also have to factor in the fuel cost.”