KUALA LUMPUR, Feb 13 — Motorcycle ride-hailing service Dego Ride will continue with its operations, in defiance of Transport Minister Datuk Seri Liow Tiong Lai’s order to stop its "illegal” service immediately.

Dego chief executive officer Nabil Feisal Bamadhaj insisted that his firm only matched riders with passengers and was not a commercial setup.

He further noted that they were operating in a legal gray area, as such a service  was neither explicitly permitted nor prohibited by law. Motorcycles had not been used for large-scale, hire-vehicle purposes previously.

"Yes, (we) intend to carry on because we are still doing deliveries with our rider partners. We’re not similar to the taxi services being operated under SPAD (Land Public Transport Commission) so we cannot be applying for such a licence.

"We will first need to get motorcycles categorised as a commercial vehicle; then and only then will the RTD and e-hailing laws be amended with the addition of motorcycles,” he told Malay Mail Online today.

Nabil further insisted that his company did not specify that they were a taxi service, adding that Dego Ride does not profit off "deliveries” offered by partners, while the published rates were also just a "guideline” for riders and passengers.

"Dego Ride or Dego has never made a single cent from any of the transactions on Ride to date,” he said.

Liow was today reported as saying that the service was illegal and must be discontinued immediately for "safety reasons”.

He also warned that enforcement officers could pose as passengers to nab motorcyclists offering rides under Dego.

Despite saying that Dego will not stop operations, Nabil insisted that his firm was not "challenging” the law.

He instead urged authorities to evolve with the times and to amend the Road Transport Act to include motorcycles for commercial use and operations.

Dego’s situation appears similar to the early days of ride-sharing services Uber and Grab, which use private vehicles to offer rides for payment. Despite the similarities to taxis, both firms insist that they were not in the same category.

Authorities initially labelled the two services as illegal, resulting in sporadic enforcement against their "partners”, the term used for those signing up to offer rides with the firms.

Taxi operators continue to criticise the authorities not shutting down both firms, pointing out that Uber and Grab drivers and vehicles were not subject to the licensing and inspection requirements imposed on commercial hire-vehicles.

However, both firms have since been included in a proposed overhaul of the local taxi industry.

"We are asking the government and its relevant bodies/agencies to allow innovation and technology along with empowerment to solve the unemployment and traffic congestion problems of the nation,” Nabil said today.