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Land Transport Authority to step in to investigate as rental car prices soar over 400%.

22/05/2022

Recent fare increases during peak periods have left consumers frustrated.

According to the Land Transport Authority (APAD), the government will monitor the services provided by rental car from time to time and gather information before deciding whether to intervene to adjust the prices of rental car.

Currently, there are more than 10 providers of dial-a-ride services across the country, so there is no monopoly. Initial forecasts are that dial-a-ride fares will increase by over 400% at peak times, which may be due to demand outstripping supply.

This simply means that there are more passengers seeking rides than vehicles engaged in dial-a-ride, which is why dial-a-ride service providers have the ability to determine market prices. Dial-a-ride fares would be more reasonable during off-peak hours.

Some experts believe that if the government sets a maximum price for dial-a-ride, this will lead to dial-a-ride drivers choosing to leave the industry due to inadequate returns. This would lead to a shortage of drivers, which would also affect people who need to rely on dial-a-ride services.

Many people say they have already decided to return to using taxi services because taxi fares during peak hours are more reasonable than dial-a-ride services.

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