KUALA LUMPUR: Authorities will begin a clampdown from Oct 1 on those offering transport services using Uber, an online portal reported yesterday.

The report, quoting Road Transport Department (RTD) director-general Datuk Seri Ismail Ahmad, said private vehicles found offering transport services through the smartphone application will be impounded.

On top of that, individuals or companies providing the services could be fined between RM1,000 and RM10,000 or jailed up to a year for the offence under Section 16 of the Land Public Transportation Act 2010.

“It is similar to ‘teksi sapu’ or illegal taxis and that is why we are taking action to stop it,” Ismail was quoted as saying.

“The public should be aware that by using private vehicles as taxis, they are not covered by any insurance should they get involved in any accident.”

Uber — the company offering transport through a smartphone application — came under the spotlight after Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia (Gabungan) called on the Land Public Transport Commission (SPAD) to act against it, citing security and licensing issues.

The Malaysian Insider had reported SPAD saying in August that it was dealing with the issue cautiously as the service was popular, following complaints by taxi drivers that Uber had affected their income in the Klang Valley.

SPAD chairman Tan Sri Syed Hamid Albar had also said the fact that Uber was using private cars which had no operating licences was already against existing public transport laws. “As far as I know, they also do not have public liability insurance, which puts the safety of passengers at risk,” he said.

Following the backlash, Uber said it wanted a chance to discuss with government officials the transport issues plaguing the Klang Valley. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on September 23, 2014.