Let market forces determine e-hailing fare, says Loke

The transport ministry does not want to intervene, if possible, on the issue of an e-hailing fare floor price, and instead wants it to be determined by the market, says minister Anthony Loke.

Loke said his ministry was aware of the call by the E-hailing Drivers Association (EHO) for the government to intervene in the fare issue, including in the standardisation of fare rates between cities.

"We understand that they requested the government to set a floor price for e-hailing. So far, the proposal is still at the discussion stage and there is no decision yet," he said at a press conference in Putrajaya today.

Loke said the ministry also understood the drivers’ hopes on the matter since drivers cannot drive at a loss and there are operational costs that need to be borne.

"But we need to understand that if there is a floor price, the fare price to users may increase, so it is a consideration that needs to be taken into account, too. 

"So if we let the market determine the price, there is dynamic pricing between EHO, the drivers and passengers," he said.

The media previously reported that EHO had urged the government to implement a floor fare rate for the transport service to protect the welfare of drivers.