Maxim MY engages authorities after cease-operations directive

Ride hailing operator Maxim Malaysia is currently in discussions with relevant authorities, after receiving orders from the Land public transport agency (APAD) to cease operations in country. 

In a statement to Paultan.org, Maxim said that it continues to operate nationwide and hopes the talks will lead to the matter being resolved, so as to provide clarity to its users, partners, vendors and other stakeholders who work closely with the company. It also hopes to maintain the goodwill and reputation it has built over the years, amid the government directive to cease its operations.

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Maxim Malaysia also assured that its partner-drivers undergo thorough inspection and oversight by Maxim's specialised officers, who are in charge of ensuring that all its drivers have the right paperwork in accordance with ride hailing guidelines set by APAD and the transport ministry (MOT). The ride hailing firm has been around in Malaysia for five years and originates from Russia. 

Last week, transport minister Anthony Loke told reporters at an event, that APAD issued formal letters to Maxim and InDrive instructing them to halt all services in the country from 24 July, the Vibes reported. However, Loke said that both ride hailing companies have the right to appeal, and a decision on the appeal will be made by himself. 

According to APAD, Maxim and InDrive were found to be in violation of the Land Public Transport Act 2010, in relation to failing to ensure that their drivers hold valid and mandatory public service vehicle (PSV) licenses.

Loke had said that this is unfair to other compliant drivers who have obtained their PSV licenses, adding that it also poses a safety risk to passengers as operating without a license means they are not covering by ride hailing insurance and did not undergo mandatory vehicle inspections. 

This action by APAD and MOT follows calls by the Malaysian p-hailing riders association (Penghantar) who criticised APAD for failing to take action against illegal foreign ride hailing platforms operating in the country, NST reported. The group claimed that numerous complaints and reports were lodged against the two firms by local ride hailing drivers. 

Meanwhile, the Malaysian communications and multimedia commission (MCMC) has not received any official application from MOT to restrict access to the mobile applications of Maxim and inDrive yet. However, communications minister Fahmi Fadzil reportedly said that as and when the application is submitted, the MCMC is ready to act in accordance with existing legislation to block the apps. 

Earlier this month, ride-hailing firm inDrive Malaysia has been slapped with a notice of revocation by APAD. The firm said it had engaged with relevant regulatory authorities to better understand the situation in order to take the necessary actions, reported Bernama.

The Russian-based company added that it was committed to providing safe, reliable and accessible mobility solutions to Malaysia and that it will ensure the continuity of its business in the country.

The notice was reportedly given to inDrive for flouting ride hailing transport guidelines, with complaints against the company claiming that its drivers were not equipped with full regulatory requirements such as the PSV and ride hailing vehicle permit (eVP) licenses. There were also several safety concerns related to the quality of drivers on the platform.

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