More opposition against Uber, this time in Kuala Lumpur

 
Uber has been stirring up opposition across the countries that it has launched in, from both incumbent taxi companies and governing bodies alike. Today, Uber faces a fresh round of resistance in Kuala Lumpur from the Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia, an association representing the local taxi industry.

According to a report by Bernama, Gabungan’s deputy president Datuk Mohd Alias Abdul has called on the Land Public Transport Commission (SPAD), the police, the Road Transport Department, and the Malaysian Communication and Multimedia Commission to take action against Uber, whom they believe has affected the income of taxi drivers in the Klang Valley since they launched there late last year.

Mohd Alias’ main issue with the US-based taxi service is that it fixes its fares based on its estimation on the distance and time of service, which does not take into account several other costs that local taxi drivers typically have to bear, such as periodical inspections, insurance premiums, and taxi permits and licenses.

Licensed taxi operators reportedly have to pay insurance premiums that are up to four times higher than private vehicles, according to Koperasi Pengangkutan Putrajaya dan Cyberjaya Berhad honorary-secretary Mohd Salleh Mat Zin. It is unsure whether Uber Malaysia provides any insurance coverage for their vehicles. In the US, Uber limousine drivers are covered by commercial insurance, according to a report by Fast Company.

Mohd Salleh adds that Uber’s appointment of local companies to manage the service on its behalf violates the transport law in the country, as these private vehicles may not have to undergo inspections at the local computerized vehicle inspection centre. In the event of an accident, these oversights would cause many problems for the passengers involved.

With the safety of passengers and the income of local taxi drivers in question, the stakes are high, though the government has yet to step in to make any changes.

We have reached out to Uber for comment.

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