Govt to review 20pc e-hailing commission cap over drivers' earnings

The Malaysian government plans to reassess its 20 percent commission cap on e-hailing services, following worries that the rate is reducing drivers' earnings. The Transport Ministry announced that the Land Public Transport Agency would conduct the review, using stakeholder discussions and two upcoming studies. In response to inquiries from opposition MP Jimmy Puah Wee Tse, the ministry acknowledged concerns from e-hailing drivers who have called for operators to lower their commissions for fairer and more transparent earnings.

The review will consider the Transport Ministry's Klang Valley Public Transport Strategic Plan and the Human Resources Ministry's study on fair compensation for gig workers. The commission cap is currently set at 20 percent for private vehicles and 10 percent for taxis, rental cars, airport taxis, and premium taxis, as mandated by the Land Public Transport Commission's 2018 guidelines and 2024 service level requirements.

Industry proposals, such as Grabcar's dynamic fare structure, suggest a commission rate that varies with market conditions but should not exceed 20 percent for the weekly or monthly average. A proof-of-concept trial by Grab found that the average fee for participating drivers was 18 percent, with an effective rate of 15 percent.

The trial, approved by the government, showed a continuous increase in earnings per minute in transit for Grab driver-partners who joined the new fare structure since May 31.