Uber and Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia has signed an MOU to introduce taxi vehicles on the Uber platform in Malaysia. This would allow the best taxi drivers under the association to get passengers through the Uber network.
According to the Gabungan President, existing taxi drivers can benefit from Uber’s technology platform to match them with potential new riders. This can help them to increase income and reduce idle times.
In the first phase, about 500 of Gabungan’s best drivers and taxi vehicles will be introduced onto the Uber platform. All taxi drivers are required to comply with Uber’s driver-partner and vehicle requirements which include having a valid license and insurance and passing Uber’s background checks.
The UberTaxi pilot project is open to all types of taxi vehicles including sedans and MPVs of not more than 5 years old. The UberTaxi fares will be based on UberX structure and mechanics which includes dynamic fares. While on the system, UberTaxi drivers are still able to accept street hails when they are not online with Uber.
Once it goes live, riders will see UberTaxi as a new product option alongside with UberX, UberXL and UberBlack. The mode of payment remains unchanged and you can still pay either by cash or credit/debit card.
According to Uber, the introduction of UberTaxi will benefit riders as there are more cars on the road which would help reduce waiting time while getting more people to where they are heading more quickly. For existing drivers, Uber says it will benefit them as well as more drivers on the system will improve network efficiency which eventually increases overall demand over time.
It looks like Uber is closing the gap with their closest rival, Grab. Earlier on, they introduced cash payments to increase its customer base and now they are adding taxi vehicles to increase the number of vehicles on the platform.