E-hailing will destroy the taxi industry, says cab companies

KUALA LUMPUR: Taxi companies say the legalisation of Uber and Grab could kill the conventional taxi industry if the 'e-hailing' concept is not properly regulated and implemented.
In responding to theSun's report on Monday, ‎Big Blue Taxi founder and advisor Datuk Shamsubahrin Ismail said the proposed new landscape for the taxi industry by year-end by the Land Public Transport Commission (SPAD) could be the beginning of the end for taxi permit holders.
"My fear is that the taxi drivers will give up driving taxis and return the vehicles to us to become Uber drivers," Shamsubahrin said at a press conference in his office in Wisma Central today afternoon.
He claimed that since January, nearly 80% of taxi drivers in many taxi firms have returned their taxis back to the taxi companies due to Uber and Grab's services.
"When the taxi drivers return the taxis to us (the company), the industry will collapse! Please remember we still need to service the bank loans and other costs," he added.
He also claimed that four cabbies under Big Blue have surrendered their cars to his company.
It is expected that around 130,000 new Uber and Grab drivers (full-time and part-time) will co-exist in the saturated taxi market as a result of the 'e-hailing' initiative.
There are 67,000 active taxi drivers throughout the country with 36,000 cabbies in the Klang Valley.
Shamsubahrin questioned the alleged proposal by SPAD to push conventional taxi companies to adopt a profit-sharing concept or guaranteed percentage of the day's income for cabbies.
"I want to know how it will be done. Tell me how SPAD can do it? Because right now, for the blue taxi drivers, they need to get a minimum of RM350 per day and RM200 per day for budget taxi drivers for them to earn enough to cover the daily cost," he said.
Federal Territory and Selangor Taxi Operators Association president Datuk Aslah Abdullah concurred with Shamsubahrin's view that 'e-hailing' could destroy conventional taxis.
"If that's what's been endorsed by the Prime Minister and the special economic committee, then we have to accept. We have to face the reality sooner or later whether we like it or not," he said.