KUALA LUMPUR: The government will review the 20 per cent commission cap on e-hailing platforms following concerns that the rate is eating into drivers’ earnings.
The Transport Ministry said the Land Public Transport Agency would examine the ceiling based on stakeholder engagements and two studies scheduled for completion this year.
In a written parliamentary reply, the ministry said the government had taken note of concerns raised by e-hailing drivers and calls for operators to lower their commissions to ensure fairer and more transparent earnings.
The ministry was replying to Jimmy Puah Wee Tse (PH-Tebrau), who asked about government efforts to engage and press Grab to reduce its 20 per cent commission rate.
The review will take into account the Transport Ministry’s Klang Valley Public Transport Strategic Plan study and the Human Resources Ministry’s study on a fair compensation structure for gig workers.
The ministry said the maximum commission rate was capped at 20 per cent per trip for private vehicles and 10 per cent for taxis, rental cars, airport taxis and premium taxis.
These limits are enforced under the Land Public Transport Commission’s 2018 guidelines on e-hailing services and the 2024 service level requirements for e-hailing intermediation business licences.
The caps were introduced in 2018 after drivers complained of commission rates of up to 25 per cent.
On industry proposals, the ministry said Grabcar Sdn Bhd had proposed a dynamic fare structure that adapts to market conditions.
“Under the proposal, the commission rate is proposed to be flexible for each daily trip but not exceed 20 per cent for the weekly or monthly average commission rate,” it said.
The government approved a proof-of-concept trial by Grab to assess the model, known as the Grab Service Fee.
The structure takes into account trip distance, location, duration and the driver’s real-time movement between drop-off and pick-up points.
Grab data showed that as of May 31, 170,944 driver-partners had opted into the scheme. The average fee stood at 18 per cent, with an effective rate of 15 per cent.
“The earnings-per-minute-in-transit of Grab driver-partners who joined the new fare structure recorded a continuous increase of more than 6 per cent since the start of the proof of concept, compared with before they joined,” the ministry said.
It added that Grab periodically submitted trial updates to the ministry and the Land Public Transport Agency.