By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, May 19 (Bernama) -- A mobility platform said Malaysia’s fuel subsidy mechanism continues to help e-hailing drivers manage rising operating costs, allowing many to remain on the road despite global fuel price pressures.
The RON95 fuel subsidy and the 800-litre monthly fuel quota for e-hailing drivers are easing fuel expenses for drivers on platforms such as inDrive, supporting earnings and service availability in the sector.
InDrive Asia-Pacific (APAC) director Mark Tolley said the measures are helping stabilise the industry while ensuring e-hailing services remain accessible and affordable for consumers.
“In Malaysia, continued fuel subsidies have played an important stabilising role,” he told Bernama, adding that the fuel quota has helped ease daily cost pressures for drivers.
He said the support has helped maintain service reliability and driver participation in the e-hailing sector, unlike some neighbouring countries, where drivers are becoming increasingly selective.
Operators Prioritise Efficiency Over Fare Increases
Tolley said Malaysia’s approach has allowed the local industry to remain relatively stable while ensuring e-hailing services remain accessible and affordable for consumers amid broader inflationary pressures.
At the same time, Malaysian consumers are becoming more price-conscious and are actively comparing fares, estimated arrival times and service reliability before booking rides.
As a result, ride-hailing operators are increasingly focusing on operational efficiency, technology optimisation and pricing transparency rather than implementing broad-based fare increases.
Tolley said most platforms are now relying on targeted pricing adjustments, lower promotional spending, commission restructuring and artificial intelligence (AI)-driven routing systems to improve efficiency and reduce driver downtime.
Despite the higher operating environment, he said inDrive does not expect sudden or aggressive fare increases in Malaysia.
“Competition is more likely to drive service innovation and efficiency improvements rather than aggressive fare increases,” he said.
To further support drivers, inDrive introduced a temporary one per cent commission initiative in Kuala Lumpur until May 31 to help ease cost pressures.
Beyond May 31, he said inDrive would assess the situation and explore suitable ways to support drivers as developments unfold.
Tolley elaborated that one of iDrive’s measures is the Platinum Driver League, where this year, the campaign would reward driver-partners with weekly prizes and grand prizes worth over RM100,000.
Malaysia Remains An Attractive Mobility Market
Beyond current economic challenges, Tolley said Malaysia remains one of the region’s most attractive mobility markets, supported by rapid urbanisation, high smartphone penetration and growing dependence on e-hailing services for daily commuting and tourism mobility.
He expects ride-hailing demand in Malaysia to remain stable, with modest growth over the next 12 to 18 months, supported by stronger economic activity, a tourism recovery, and continued urban mobility demand.
Tolley also said that Bank Negara Malaysia’s projection of four to five per cent economic growth in 2026 is expected to support consumer mobility spending despite ongoing global uncertainty.
Visit Malaysia 2026 is also expected to boost demand for airport transfers and intra-city travel.
Industry Prepares For Long-term Sustainability
At the policy level, Tolley noted that Malaysia is also preparing the industry for long-term sustainability through initiatives such as the proposed Gig Worker Act, which reflects broader efforts to strengthen protections and accountability in the platform economy.
Tolley said that while future regulations could increase compliance costs related to insurance and worker benefits, they would also help create a more sustainable and structured ecosystem for drivers in the long run.
Looking ahead, he said the next phase of growth for the Asia-Pacific industry is likely to be shaped by integrated mobility ecosystems that combine services such as ride-hailing, delivery and financial services.
“Technology will continue playing a major role, particularly through AI-driven routing, predictive matching and enhanced safety features,” he said.
Sustainability would also become increasingly important, with stronger adoption of electric vehicles and better integration with public transportation systems.
“For the industry, the challenge is finding the right balance between affordable fares for consumers and sustainable earnings for drivers,” he added.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
