Breaking down the Uber battle in Malaysia

Firdaus Ariff is a business strategist and executive producer based in Kuala Lumpur, Malaysia. This article was republished with his permission from Medium.

So, here we go again. Another city, another Uber fight against authority. Just another episode in a drama starring Uber.

We all love good drama of course. Especially those with simple, clear narrative — good versus evil, agile startup versus slow bureaucrat, local versus foreign.

But is it that simple and clear cut?

Uber has been in Kuala Lumpur for almost a year now. They started with their flagship UberBlack by hiring local limousine operators. It’s all good at the start — generous vouchers, excellent cars, easy to use app. The prospect of getting a ride in a BMW 7 Series made early adopters very excited. Existing users from other countries simply call for Uber when they’re in Kuala Lumpur.

Enter UberX — with a price as cheap (or cheaper) than taxis, which sent a shockwave to the local landscape. SPAD took notice and said things that’s similar to any other authorities around the world. Uber need to comply with licensing, safety, and so on. Just a reminder, not a crackdown.

MyTeksi, a local cab-calling startup enters the arena. They issued a statement to their drivers regarding an impending “threat to our livelihood”. There’s no mention of Uber by name but the phrase “We shall face this giant head on as One, showing them the indomitable Malaysia Boleh spirit” is a dead giveaway. They even co-opt the occasion of Merdeka to galvanize people to their warcry.

Uber Malaysia didn’t stop offering UberX but they did stop using private cars such as MyVi and switched to licensed limousines. Essentially, they are offering an almost-UberBlack at UberX prices.

However, the move didn’t appease the authorities. Soon after, Director General of Road Transport Department announced a joint operation with SPAD and the Royal Malaysian Police to crack down on Uber’s operation.

Now the grand narrative seems to be properly set up; agile startup versus slow bureaucrats — Uber’s usual framing of the story. On the other hand; MyTeksi positions it as national interest versus “foreign intervention” and protecting the livelihood of taxi drivers.

Time to grab some popcorns and enjoy the showdown? Well, not so fast.

Zoom in

Let’s put aside the media news cycle and go the ground. What do users want? Fast, cheap, and a safe mode of transportation. What choices do they have now? They have regular taxis, as well as taxis augmented by MyTeksi and UberX.

Regular taxis

Zooming in between

Zoom out

The Future