KUALA LUMPUR – E-hailing companies must ensure that their drivers do not renegotiate fares after a booking has been accepted, the Land Public Transport Agency (APAD) has clarified.
In a statement on Tuesday, APAD explained that e-hailing services are part of the gig economy, with pricing governed by market forces.
However, according to APAD regulations and business licence conditions, once a booking is confirmed, drivers are obligated to provide services based on the agreed fare.
“Licence holders must ensure drivers cannot renegotiate fares once the booking has been accepted, instead providing the service as per the confirmed booking,” the agency said.
The statement also clarified that drivers have the freedom to accept or decline bookings, but once accepted, the fare must remain unchanged.
This clarification comes after a stakeholder engagement session with the Delivery Drivers Association on November 17, where several issues were raised.
APAD further stated that the Ministry of Transport is conducting a Strategic Public Transport Plan (PSPA) study, which includes evaluating the feasibility of regulating e-hailing fares. “The results of this study regarding floor fares for e-hailing will be presented to the Minister for further consideration. However, the government is not regulating e-hailing fares at present,” the statement added.
Additionally, APAD noted that private vehicles used for e-hailing services must obtain supplementary insurance from their insurers, which will set the additional cost. This insurance will cover not only the driver, vehicle, and third parties but also passengers who are not covered by standard private vehicle insurance.
The Ministry of Transport, in collaboration with Bank Negara Malaysia (BNM), has established a task force to examine and coordinate affordable e-hailing insurance schemes. “The task force is currently gathering and analysing data on the implementation of existing insurance schemes to assess risk factors based on accident rates and insurance claims involving e-hailing vehicles,” APAD explained.
On the matter of the Budi Madani RON95 (BUDI95) subsidy for e-hailing drivers, APAD clarified that this policy falls under the Ministry of Finance and the Ministry of Domestic Trade and Cost of Living (KPDN). “APAD’s role is limited to coordinating e-hailing driver travel data to be submitted to the Ministry of Finance for further action,” the agency concluded. – December 23, 2025