KOTA KINABALU, Sept 27 — City police here have arrested two local Uber drivers in an apparent crackdown on "illegal transport services that has been gaining popularity in the city”.

City police chief assistant commissioner M Chandra said the two suspects, a 25-year-old driving a Perodua Myvi and a 37-year-old driving a Proton Persona, were detained yesterday about 4.30pm at the Imago shopping centre.

"We will continue to monitor any Uber activities which is considered illegal because they do not have a permit for running public transportation without the approval from the Commercial Vehicle Licensing Board,” he said.

The drivers and their cars were brought to the city traffic police station for investigation under Section 33 of the Commercial Vehicle Licensing Board Act 1987 for using a private vehicle for commercial purposes.

The two have not been charged and are currently out on police bail while awaiting a court date. They face a minimum fine of RM1,000 if convicted.

Uber, the global ride-hailing service available through smartphones started in May and has been gaining popularity in the city. It has drawn a local competitor, Grab.

Chandra said that such services are not legal in Sabah and those operating using the app here are considered kereta sapu or pirate taxis.

The ride sharing app has previously been declared illegal but continues to operate due to the difficulty in charging the case in court.

The government had recently given its approval for these ride-sharing services with the proposal for the issuance of a new public service vehicle (PSV) permits called the "driver card”.

Deputy Transport Minister Abdul Aziz Kaprawi said new permits would allow the government to legalise Uber and Grab services without amending the existing laws.

He also said the Road Transport Department and the Land Public Transport Commission were deliberating the new PSV permits and would require all Uber and GrabCar drivers to register with the authorities.