KUALA LUMPUR – InDrive, a Russian based ride hailing app, has been given a notice of termination by the Land Public Transport Agency (APAD) for flouting e-hailing transport guidelines.
APAD, an agency under the Transport Ministry, has given inDrive three months to return their Intermediation Business License (IBL).
The company has also been given a chance to respond to the notice within the same time period.
The IBL is a necessary regulatory requirement for any e-hailing operation in Malaysia.
Sources familiar with the matter said inDrive has been given numerous show cause letters prior to the termination letter in view of their failure to adhere to the guidelines, which was introduced in 2019.
It is understood that among the complaints against inDrive was the failure to ensure their drivers are equipped with the full regulatory requirements, including Public Service Vehicle (PSV) and E-Hailing Vehicle Permit (eVP) licenses.
There were also several safety concerns with the quality of drivers on the platforms, especially with the rise of safety incidents involving drivers from the platform.
This is the second such termination notice involving a Russian-based e-hailing app.
In 2023, the Road Transport Department hauled up Maxim over a violation of the Land Public Transport Act 2010. More specifically, it has been discovered that the service has been allowing vehicles under its charge to operate without a valid e-hailing vehicle permit (eVP), which breaches Section 12A(5) of the Act.
Maxim was caught committing the offence in Putrajaya and the city of Kuantan in Pahang during the nationwide Ops eHailing shakeup, which aims to weed out unregistered vehicles as well as those operating without an eVP. The department reports that, out of 5,000 vehicles under the Maxim service, only 402 have valid permits.
InDrive entered the Malaysian market in late 2021 with presence currently in Selangor, Kuala Lumpur (KL), Penang and Johor Bahru. Early this year, inDrive publicly announced that they expect to exceed 40,000 registered drivers by the end of 2025.
InDrive is known for its distinctive approach to ride fares. Unlike traditional ride-hailing platforms like Uber or Lyft, inDrive allows passengers and drivers to negotiate the fare before the ride begins. The peer-to-peer bargaining system empowers both parties to agree on a mutually acceptable price, rather than relying on an algorithm-based fare structure.
Originally named inDriver (short for Independent Drivers), inDrive started in 2012 in Yakutsk, Russia. It has expanded rapidly and operates in various regions worldwide, including Latin America, Africa, Asia and the Middle East.
The platform offers services similar to other ride-hailing apps, such as car rides, courier services and even cargo transport. – May 2, 2025