ALOR STAR: E-hailing drivers in the northern states are feeling the pinch due to reduced service fares despite a surge in the number of passengers in Kedah, Penang and Perlis ahead of Hari Raya Aidilfitri.
Northern E-Hailing Drivers Association chairman Norzabidi Bahador said fare rates have been steadily declining in the past three days, leaving drivers to bear operational costs without any profit.
He said the trend is contrary to past experiences where e-hailing fares typically triple during festive periods.
"It's expected that demand for local e-hailing services would rise and lead to fare increases, but this Hari Raya, we're observing a downward trend in e-hailing fares.
"Not like two months ago during the Chinese New Year, where e-hailing fares during the festive week were very encouraging.
"Many e-hailing drivers feel dissatisfied and pressured by declining fares during the Hari Raya Aidilfitri week, resulting in many tasks being rejected due to unreasonable pricing," he said in a statement today.
He said the standard earning minus commissions has dropped to less than RM1 per kilometer, causing difficulties for users in finding nearby e-hailing drivers and increasing wait times.
"This is because of rejections or cancellations by drivers at the last minute due to excessively low fare rates," he added.
Norzabidi attributed the situation to fierce competition among e-hailing companies, resulting in unsustainable rates considering the distance traveled, time and effort expended by drivers.
He urged the Transport Ministry to quickly address the issue and create a win-win situation to ensure proper compensation for all parties.
"Many drivers are burdened with high operational costs, while profits from their tasks are minimal, some even resulting in losses," he added.
Northern region based E-Hailing driver Mohd Kamal Yahya, 55, confirmed that drivers' earnings have been lower than RM1 per km, despite it being just three days before Aidilfitri.
"I had several jobs today in Perlis. In one 17km trip between Arau to Kuala Perlis, I only managed to earn RM13 from a RM14 fare. In another trip in Penang, I drove 16km from Seberang Jaya to Bukit Mertajam but only earned RM12 from a RM16 fare.
"We still have to account for fuel and maintenance costs for vehicles, so we are not making much from each trip," he said.
Another driver, Ikmal Hashim Ibrahim expressed disappointment over the lower fares during the Aidilfitri season compared to Chinese New Year and Deepavali, noting the inconsistency between supply and demand.
"Our company has not even produced any notices about the rates; who knows what's actually going on. Usually, there will be announcements regarding higher demand, but nothing has been said yet," he added.
