Tuesday, August 25, 2015

Uber, Grabcar in KL

It is expected to see Uber and Grabcar, both private hire vehicle to transform and provide stiff competition to unreliable taxis in Klang Valley.

Uber has hit Malaysia since past 2 years starting out in Klang Valley, then Johor Bahru and Penang. With the ease of usage of app, reliable service and even cheaper than metered taxi fare have given the passengers a better choice.

Grabcar is a brainchild from long standing MyTeksi app which connects most of taxi drivers in Klang Valley. The mode of operation is almost similiar with Uber but with better cars and higher fares.

Experience read

  1. Seasonal Uber driver: Walauwei.com
  2. Falling share of passengers: More switch to ridesharing

Legality 
They have managed to find great/glaring loopholes in the existing regulations and take advantage of technology, enforcement challenges and a horrible taxi service.

Effectively Uber just connects you to a driver but has no way of knowing if that driver is legally permitted to drive you.

Supply vs demand
Reportedly there are whooping 37,000 taxis alone in Klang Valley, yet Uber and Grabcar service are well received. It added a significant supply to serve a stagnant market (so there's a fiery competition).

We will be glad to see a significant change of paradigm of public transportation in near future. The real question behind is not whether Uber is illegal or not but more on the service & practicality of dual mode (taxis & ride share) in market.