InDrive and Maxim ordered to cease operations from July 24

JOHOR BARU: The Land Public Transport Agency (Apad) has issued letters to cease operations to two Russian e-hailing applications - InDrive and Maxim - for allegedly operating illegally, says Transport Minister Anthony Loke.

"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," he told reporters after officiating the reopening of the track for cargo service operations for the Kempas Baru-Pasir Gudang route, near here today.

On May 5, the Malaysian P-Hailing Riders Association was reported to have urged the government to carry out strict enforcement action against the two e-hailing platforms, including blocking access to them, for offering services without complying with regulations under the existing act.

The association claimed that both platforms failed to ensure their drivers possessed valid Public Service Vehicle (PSV) licences, as required under Malaysian law.

In addition, the association also alleged that some drivers using both applications did not have e-hailing insurance and did not undergo vehicle inspections as stated under the stipulated terms and agreement.

According to Apad, the two e-hailing companies violated licensing conditions under the Land Public Transport Act 2010 (Act 715), including the requirement that all vehicles under their platforms must operate with a valid E-Hailing Vehicle Permit, which is one of the main conditions under their Intermediation Business Licence.

Such violations constitute an offence under Section 12D(1)(a) of the Act, which empowers the agency to revoke the licences of operators found violating the terms of their licence.