PETALING JAYA, March 22 — Taxi drivers have been dealt with a huge blow in their war against Uber because the Malaysian Communications and Multimedia Commission (MCMC) has refused to sanction their demands to block the taxi-hailing app availability in Malaysia.

In a statement to Malay Mail, the MCMC stated that after engaging with the Land Public Transport Commission (SPAD) about Uber’s services currently available in the local mobile app markets, “both agencies are of the view that the mobile app Uber has so far not breached any laws of Malaysia”.

“However, we would like to remind the public that some Uber drivers and cars are currently operating without the approved Public Service Vehicle licence and hence their service may be in breach of corresponding land public transport laws.

“SPAD has also informed MCMC that legal action will be taken against drivers who provide services without the proper permits,” the statement said.

The statement also reminded Uber users to be more aware of the risks they may face when using its services.

“They should read the terms and conditions of the service carefully before agreeing to it.

“Users too should check with their (Uber drivers) personal insurance companies if they are covered in the event of an accident while using the Uber services,” the statement added.

Uber’s user privacy issue was raised last week following a revelation on Facebook by local actress Daniella Sya that she received an inappropriate text from an Uber driver after using the service.

In response, her fans also shared similar stories on Daniella’s Facebook posting, claiming to have received similar naughty messages from Uber drivers.

It is understood that a meeting was held earlier this month between SPAD officials and MCMC’s strategic communications team to resolve the Uber app complaint by the cabbies lodged before the Lunar New Year holidays.

It is also understood no meeting took place between either commission’s legal and policy officers to determine the app’s legality in Malaysia.

On Feb 13, Metered Taxi Drivers Task Force chairman Amran Jan lodged a complaint with MCMC’s consumer complaints bureau and also delivered an official letter to the commission’s chairman Datuk Seri Dr Halim Shafie demanding a total shutdown of the car-sharing app to protect the taxi industry.

“We believe we have strong grounds for MCMC to block or restrict Uber app from being operational as SPAD and Road Transport Department have declared that transporting services using private vehicle via this mobile app is illegal,” Amran had said.

The taxi group leader claimed that, since the introduction of the Uber car-sharing model last year, “Uber has created a new wave of ‘teksi sapu’ (illegal taxi) and jeopardise public safety because Uber drivers do not hold PSV licences or a driver’s card”.

It is learned that three days after the complaint was filed by Amran Jan, a letter dated Feb 16 was signed by MCMC’s Monitoring and Enforcement Division chief Zulkarnain Mohd Yasin and delivered to the SPAD Enforcement Division.

The MCMC’s letter stated that: “Setelah diteliti, aduan yang dikemukakan adalah tertakluk dalam bidang kuasa pihak tuan untuk tindakan seterusnya.” 

(After much deliberation, the complaint lodged is under your jurisdiction for action).

Two weeks ago, Malay Mail contacted the MCMC’s consumer complaints hotline to seek further clarification and its customer service officer confirmed that no action would be taken against the controversial ride-hailing app.

“The Uber app issue is fundamentally under the purview of SPAD because it involves land public transport matters. This is beyond MCMC’s jurisdiction,” said the officer.

However, as reported on Feb 15 in Malay Mail, SPAD chairman Tan Sri Syed Hamid Albar stressed the public transport commission also had no jurisdiction to take action against Uber app.

“It would be up to MCMC to determine whether Uber breached any law under the Communications and Multimedia Act.

“We have taken action against them (Uber drivers) but we can’t take action against Uber,” Syed Hamid said.

SPAD chief executive officer Nur Ismal Kamal had told Malay Mail that the Uber service was illegal because it was operated by non-approved drivers in unlicensed cars.

“The Uber app is not illegal as far as SPAD is concerned.

“Any taxi driver can use a mobile app to pick up passengers but its service is considered illegal when Uber despatches a driver without PSV licence driving a private vehicle with no taxi permit,” Nur Ismal had said.