E-hailing operators InDrive, Maxim ordered by APAD to cease operations fr June 24 – companies may appeal

The land public transport agency (APAD) has issued letters to e-hailing provides InDrive and Maxim for allegedly illegal operation, Bernama has reported.

“Effective July 24, InDrive and Maxim must cease operations in this country. The two ride-hailing companies can appeal, but the final decision rests with me,” transport minister Anthony Loke has said.

This comes after the Malaysian P-Hailing Riders Association reportedly urged the Malaysian government to carry out strict enforcement against the two e-hailing platforms for offering services without complying with existing regulations.

The association claimed that both platforms failed to ensure their drivers possessed valid Public Service Vehicle (PSV) licences as required under Malaysian law, and alleged that some drivers on these platforms did not have e-hailing insurance and did not have their vehicles inspected as stipulated, according to the report.

According to APAD, InDrive and Maxim violated licensing conditions under the Land Public Transport Act 2010 (Act 715), which also requires that all vehicles serving on these platforms must operate with a valid e-hailing vehicle permit, which is one of the main conditions under the companies’ intermediation business licence.

Violations such as these constitute an offence under Section 12D(1)(a) of the Act, empowering APAD to revoke the licences of operators found violating the terms of their licence.

Making its debut in Malaysia in October 2021 as InDriver, the company claimed a user base of more than 100 million users across 500 cities in 34 countries. In September 2022, a company processing inDriver applications was caught by JPJ to be operating with an expired business licence. It subsequently renamed to be InDrive, and announced that it received APAD approval in June 2023 to operate in Malaysia.

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