For as long as taxi companies continue to enjoy five- to seven-year contracts imposed on taxi drivers, they have very little incentive to ‘improve the welfare of its drivers’ in the face of recent stiff competition taxi drivers face from Uber and Grab ride-sharing alternatives.

Recently, the Land Public Transport Commission (Spad) chairperson Syed Hamid made public remarks directing taxi companies to improve the welfare of its drivers. However, such remarks carry little weight and are even deemed insincere, when matched by the lack of action by Spad to make this happen.

Since November last year, I have urged Spad to release thousands of taxi drivers that are currently bound by long-term contracts with their respective taxi companies. At this moment, drivers who rent taxis from taxi companies have no choice but to sign a long-term agreement, and many of them had signed up before the competition from Uber and Grab arrived.

As drivers do not have the option to move around or switch companies, their respective companies have little to no incentive to do more to improve the welfare of drivers as Syed Hamid miraculously expects.

However, if taxi drivers, who pay daily rental rates of around RM55 to RM70, have the option of choosing to move to one of the many taxi companies operating, taxi companies will have to do a lot to lure the best drivers to its fold.

Taxi companies would have to be competitive with their daily rates, bring prices lower. Or add in sweeteners, such a health insurance, free rental days (to give taxi drivers a truly off day), performances incentives (such as what Uber now offers its drivers). And taxi companies will definitely do this as they don’t want to have their fleet idling away in the parking lot.

It is time for Spad and Syed Hamid to put words into action. End the long-term contracts and driver welfare will naturally improve.

RAJIV RISHYAKARAN is state assemblyperson for Bukit Gasing and Dapsy assistant publicity secretary.