The Malaysia Consumers Movement (MCM) welcomes the cabinet’s recent decision to legalise and regulate ride-hailing services such as Uber and GrabCar which is in line with the government’s public transport transportation programme.

It is appreciated and recognised that ride-hailing provide valuable service but it is also essential that consumers who subscribe to such services are protected against any uncalled-for incidents. The decision to regulate ride-hailing is indeed timely, but follow up action must be finalised quickly. It has been quite a while since ride-hailing service providers have been freely operating in an unregulated market space.

Conventional taxi drivers must now accept the fact that with the advancement of technology, such competition is inevitable. Any form of technology which benefits consumers will always be welcomed.

Policy makers may attempt to introduce regulation to provide a level playing field for various operators, but in reality, elements such as efficiency, reliability, affordability and convenience will prevail. Unless conventional service providers transform according to time, they will slowly but surely fade away.

Today, consumers demand better services. Ride-hailing providers like Uber and Grab are able to meet consumers demand as well as expectations, offering quality service at affordable price. Conventional taxi drivers must start focusing on providing what consumers want because if they are unable to do that, consumers will resort to other feasible options. This reality does not only apply to taxis but to all other services as well.

It is therefore vital that business adopt technology in order to survive. With globalisation and trade liberalisation changing the larger market landscape, protectionism, be it in the form of tariff or non-tariff barriers may soon become history.

In this instance, issues have been plaguing the taxi industry for far too long with no solution in sight. Consumers have continued to voice dissatisfaction especially on drivers refusing to use meters, but taxi drivers and relevant associations have failed to offer feasible solutions.

The Land Transport Commission (Spad) on the other hand has introduced many initiatives aimed at improving the Malaysian taxi industry to meet the needs and expectations of passengers under the Taxi Transformation Programme but this however is yet to deliver satisfactory results. Why wouldn’t consumers be thankful now that there is an alternative, transparent and cheap service made available at their convenience?

The MCM therefore believes that mere regulations or liberalisation of the taxi industry is not a long-term solution but adoption of technology and a change in behaviour of drivers will prove to be a better option moving forward.

Lobbying for protectionism at the expense of consumers should be seen as a futile effort.

DARSHAN SINGH DHILLON is president, Malaysia Consumers Movement (MCM).