1st October 2014: A Story of UBER and MyTeksi

Everyone wanted to be successful in what they do. Individually or an entity business, they have their own goals, objectives and purposes for what they do.

Yes. Success is very subjective. Two individuals who is doing the same thing might have different purpose which lead them to choose different way of doing things.

In Malaysia, a taxi driver needs to acquire his PSV license to drive a public vehicle which transport people. Most taxi drivers rent a taxi from taxi companies. There are a list of the companies which provide such services.

There are taxis in different color which has different significance. The usual taxis that most of us the public used mainly in red, orange, lime green, yellow and purple (it could be more in the list). These taxis are called ‘Teksi Bandar’ which allowed to travel in a specific cities.

However, the taxis in blue has a special significance as it allows passenger to travel to any parts of Malaysia.


Choosing to be a taxi driver provides some space of freedom. Based on the schedule and driving hours decided, a taxi drivers would be able to enjoy planning his own time and income. Still, discipline matters.

1.  The story of a taxi driver which subscribe MyTeksi.

MyTeksi is an app which brings a tagline of  “The fastest taxi booking service in town”.

Read more about MyTeksi here.

It connects the passenger who has the apps to book taxi service prior to their needs. MyTeksi is simply an apps which enhance and revitalize the current taxi service in Malaysia.

It adds safety features as passengers are able to view the drivers and taxi information once a taxi assigned.

Yet, MyTeksi  is still maintaining some traditional features of a typical taxi service, while enhancing it as below:

+ Cash payment made to the driver, plus RM2 which is a standard fee allowed to be charges for a booking through phone. Some taxi drivers do not charge this from their customers. Most do.

+ MyTeksi drivers are dealing with CASH business.

+ Taxi fare rate must be made based on meter reading. MyTeksi (the system) will be able to detect drivers who charge differently and they will be removed from the system.

+ Customers can still send feedback to MyTeksi.

+ MyTeksi drivers can choose whether to fetch a passenger or not especially when the journey is very short. In this case, passenger need to offer some amount over the meter. Passengers need to bid a price, in the event when there are none of  MyTeksi drivers willing to take his order.

+ There are taxis which rented from a taxi company by the drivers and some are owned individually by the driver.

Still, passengers and users of MyTeksi has grown and they come up with statement like, “Hassle free, got a cab within minute’ and ‘Reliable, excellent service.’

A taxi driver which uses MyTeksi apps to enhance his service and income, will still need discipline and a certain level of  professionalism to reach an average of RM200 per day while maintaining the low cost of NGV compared to petrol.

Other expenses on rental, maintenance and personal expenses during work such as meals can always be kept at minimum.

Some taxi drivers wanted to own a vehicle while enjoying making cash money on daily basis.

How about an UBER car service?

2.  The story of an UBER driver.

An UBER system, called as a disruptive business model by many (which I personally agree only to certain extent). Yet, UBER is targeting to a specific customer segment.

This means that MyTeksi and UBER serves a different set of customers, with some overlap may occur in certain segment.

“Everyone’s private driver.” is the tagline for UBER which clearly give the right clue for their service.

Read more: How does UBER different from a normal taxi service?

Some specific features that can be found in UBER model are:

+ The driver must posses a PSV license to drive any cars in UBER system as it is categorized as a public vehicle.

+  NO cash transaction between passengers and drivers. Drivers are paid on weekly basis. ALL payment made via credit card, through passengers smartphones. Passengers are also able to rate the driver’s service through the system.

+ The rental of the vehicle will be deducted from the income collected, done through the system, arranged by UBER.

+ A driver is not allowed to choose his passengers, regardless of the distance requested by them. This is an advantage for passengers.

+ Passengers are allowed to choose the type of cars. The type of cars are divided into categories. This is another advantage for passengers.

+ All vehicles status are updated  (with a permit) to be used as a public vehicle. This is a specific requirement in Malaysia. This permit must be acquired by the rental company which provides the car to the driver.

+ All maintenance matters of the vehicles are catered by the related car rental company.

A specific calculation on forecasted income for an UBER driver was normally given to the drivers as an added support by UBER team. Many other data and statistics were also shared with the drivers to support them to continue providing the service as expected.

Certain numbers (KPIs) of trips must be achieved in a week to enable UBER drivers to enjoy the forecasted income, which normally more attractive than the income of a  MyTeksi driver.

IN SUMMARY, below are my personal views on both services of UBER and MyTeksi:

+ Drivers have the option to choose for many reasons either to maintain as a MyTeksi driver (there are other similar apps available) OR an UBER driver.

+ A disruptive business model is normal for a new player to enter in an industry which has big numbers of existing players.

+ MyTeksi and UBER serves a different customer segment.

+ UBER has an additional challenge as it involves an additional duty to ensure that ALL vehicle used are CONVERTED (by the car rental company which normally a travel company) to a public vehicle status to comply to the local regulations. MyTeksi has no issues on this part.

My last point was the most important as on 1st October, JPJ has started to investigate on UBER drivers and vehicles.

It is disheartening for a licensed driver to be given an unlicensed vehicle (vehicle with a status of a private car) and stranded somewhere in JPS’s office.

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