Before Gojek, Malaysia Allow A Local Online Ride-Hailing Startup to Operate

The Malaysian government allows sharing-ride startups (ride-hailing) such as Gojek and Grab to test online motorcycle taxi services in Lembah Klang starting this year. However, a local startup, Dego Ride, first tried the market in the country.

Around 700 online ride-sharing driver-partners, Dego Ride provided services as of Wednesday (1/1). However, the service can only be accessed in several areas such as Lembah Klang, Shah Alam, Putrajaya, and Kuala Lumpur.

Nabil Feisal Bamadhaj, Founder and Chief Executive Officer (CEO) of Dego Ride said, there were more than 4 thousand people who registered as meeting partners. “Under Dego Ride, male and female drivers will serve passengers of the same sex,” he was quoted as saying by the Strait Times on Wednesday (1/1).

Dego Ride costs RM 3 or around Rp.10,167 for a trip of at least three kilometers (km). After that, the distance per kilometer is subject to a tariff of RM 1 or around Rp 3,389.

The local startup has actually been operating since 2016. However, the Malaysian government banned online motorcycle taxi services in 2017. Because this service is considered to have violated permits related to the use of private vehicles and the 1987 Road Transportation Act (APJ).

Nabil explained, 150 cc motorbikes were allowed to provide motorcycle taxi services online. However, modified vehicles are not allowed. He also hopes his company can expand services to other countries in the near future.

Dego Ride Is Expected to Open Vacancies for 5 Thousand Youth in Malaysia

Malaysian Youth and Sports Minister Syed Saddiq Syed Abdul Rahman hopes that Dego Ride will open up vacancies for 5,000 young people in his country. “Although this (Dego Ride driver) is not a long-term job, at least it can be a stepping stone,” he was quoted as saying by Bernama.

The operation of the Dego Ride is part of the proof of concept (POC) phase of the online motorcycle taxi service, which starts in January 2020. The concept test is carried out for six months. With the service test, on-demand service companies like Gojek can conduct trials in Malaysia.

The concept test is in line with the efforts of the Malaysian Government to compile regulations related to online motorcycle taxis such as Dego Ride, Gojek, and Grab. The concept test will provide an overview related to what matters need to be regulated in regulation later. During the concept test, Gojek and Dego Ride can provide online motorcycle taxi services according to the provisions.

Gojek previously tried to apply for a permit to operate in Malaysia. At present, this on-demand service provider company is present in Indonesia, Singapore, Thailand, and Vietnam. The company has also entered the Philippines through the acquisition of Coins.ph.

Likewise, Grab will launch an online ride-hailing pilot service program in Malaysia in 2020. In fact, the decacorn has been in Malaysia since 2012. Grab was established in Malaysia under the name GrabTaxi in 2012 because an online ride-sharing was indeed not allowed in Malaysia.

Grab has been preparing the pilot program since the end of last year. Services will also include food delivery or GrabFood.

Malaysian Minister Reveals His Country’s Reasons for Needing Gojek

Syed Saddiq rate, two-wheeled transportation services brought by Gojek must be seen in a broader scope. Not just sharing the ride, this service can be used for food delivery, logistics, and others.

“It is our responsibility to ensure the work ecosystem can be improved and at the same time not only involve two-wheeled transportation, we need to see it from food delivery, e-commerce distribution and much more,” he said.

He saw the culinary business in Malaysia is dominated by restaurants for the upper-middle class. In fact, according to him, roadside stalls and MSMEs can develop amid this digital economic development by encouraging the ecosystem.

In this case, Gojek has GoFood as food-delivery service, GoSend logistics, and 20 other services. Other similar players who are already in Malaysia are Grab, and specifically in the field of food delivery, there are Food Panda and Dah Dah.