SHAH ALAM, May 3 — The setting of commission rates that e-hailing companies can take should align with local market realities to ensure a sustainable industry ecosystem without compromising drivers’ welfare or companies’ resilience.
The Grab Driver Malaysia Association's president Mohd Azril Mohd Amin said the low-commission model for e-hailing companies, as proposed in Indonesia, is not yet suitable for implementation in Malaysia, given differences in population, market structure, and the number of operating companies.
Capping commission rates at an excessively low level risks affecting companies’ long-term operations, which in turn could impact hundreds of thousands of drivers who rely on the platforms for income.
As such, he said a commission rate between 13 and 15 per cent is considered more practical than the current average of around 15 to 18 per cent, to ensure a more reasonable charge structure and a balance between company profits and drivers’ earnings.
“For me, as a Grab driver in Malaysia at present, the average company commission is around 15 to 18 per cent. In Indonesia, we have to consider the population and market structure. They have around 240 million people, with only a few major e-hailing companies.
“In Malaysia, we have about 33 million people and roughly 35 e-hailing operators. So competition is higher, and profit margins are smaller.
“In Indonesia, operations can be more concentrated within certain localities and still be sufficient for companies to succeed. Compared to Malaysia, companies have to compete in a more open market.
“As a driver, I would certainly agree with lower commissions because it appears more beneficial. But that is only in the short term; in the long run, it is difficult to sustain if companies are unstable. Ultimately, it will also affect drivers,” he told Media Selangor.
Azril added that the proposed 13 to 15 per cent commission rate could balance the needs of both parties, allowing drivers to continue receiving a reasonable income while companies maintain sustainable operations.
“In my view, it is still reasonable. Not too high, not too low. It remains balanced, especially as the number of drivers continues to increase,” he said.
Previously, the media reported that Indonesian President Prabowo Subianto announced that the country would reduce the commission cap for e-hailing companies from 20 per cent to eight per cent.
He also signed a presidential regulation forming the basis for the new maximum commission cap, thereby increasing drivers’ share of income from 80 per cent to at least 92 per cent.
