It’s no go for Uber, RTD to begin crackdown on October 1

Beginning October 1, individuals or companies offering transport services using the Uber application could be fined or jailed, while private vehicles will be impounded. – Reuters pic, September 22, 2014.

Authorities will begin a clampdown on those offering transport services using the Uber application beginning October 1, The Star reported today.

The report, quoting Road Transport Department (RTD) director-general Datuk Seri Ismail Ahmad, said private vehicles that were found offering transport services through the smartphone application would be impounded.

On top of that, individuals or companies providing the services could be fined between RM1,000 and RM10,000 or jailed up to a year for the offence under Section 16 of the Land Public Transportation Act 2010.

"It is similar to teksi sapu or illegal taxi and that is why we are taking action to stop it," Ismail Ahmad was quoted as saying.

"The public should be aware that by using private vehicles as taxis, they are not covered by any insurance should they get involved in any accident."

Uber – the company offering transport through a smartphone application – came under the spotlight after Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia (Gabungan) called on the Land Public Transport Commission (SPAD) to act against the company, citing security and licensing issues.

The Malaysian Insider had previously reported SPAD as saying that it was dealing with the issue cautiously as the service was popular, following complaints by taxi drivers that Uber had affected their income in the Klang Valley.

Its chairman Tan Sri Syed Hamid Albar said the fact that Uber was operating with private cars which had no operating licence was already against existing public transport laws.

"As far as I know, they also do not have public liability insurance which puts the safety of passengers at risk," he said.

Following the backlash, Uber said it wanted a chance to discuss with government officials the transport issues plaguing the Klang Valley.

It said that it would also discuss with non-governmental organisations how the innovation could transform public transport in Kuala Lumpur.

- TMI