A Level Playing Field for E-Hailing Starts with the Law

The Ministry of Transport has ordered e-hailing platforms inDrive and Maxim to cease operations in Malaysia by July 24, 2025. The decision sparked public debate, particularly about its impact on drivers in smaller towns who rely on these platforms for income.

The public transport group TPAD (Persatuan Transformasi Pengangkutan Awam Darat) argues that inDrive and Maxim have gained popularity because they charge lower commission fees and offer greater flexibility - helping drivers take home more of their earnings.

But while this driver-friendly model is appealing, it comes with a major issue - regulatory non-compliance. According to the Land Public Transport Agency (APAD), both platforms are operating in breach of the law.

Many of their drivers do not have the required Public Service Vehicle (PSV) licences, and the companies have failed to assign valid e-Hailing Vehicle Permits (eVPs) to their vehicles.

These rules are not optional. Every e-hailing driver in Malaysia must hold a PSV license, and every vehicle must have an eVP issued by a licensed platform.

TPAD has raised valid concerns that banning these platforms could reduce competition, raise fares, or limit service in rural areas. However, allowing unregulated services to continue poses far greater risks - such as unsafe vehicles, unlicenced drivers, and declining service standards.

Licenced platforms like Grab and AirAsia Ride comply with these regulations and absorb the added costs of doing so.

In contrast, inDrive and Maxim have avoided these requirements, giving them a clear cost advantage. By spending less and charging lower commissions, they can undercut competitors - but at the expense of fair competition and safety.

There’s also a serious insurance issue. E-hailing vehicles require a specific e-hailing insurance add-on that only applies if the trip is booked through a licensed platform with a valid eVP. Without it, passengers are not protected in the event of an accident.

We however agree with TPAD's call for a comprehensive review of the e-hailing industry and regulated fare structures. But in the meantime, building a fair and sustainable ecosystem starts with enforcing the rules already in place.

If inDrive and Maxim wish to continue operating in Malaysia, then they must comply with the same laws as everyone else.