KUALA LUMPUR – Ride-hailing platform inDrive has told its driver-partners to continue operating as usual, even as it faces a possible shutdown following a notice of termination from the Land Public Transport Agency (Apad).
In a message issued to its drivers, inDrive Malaysia said it is “currently in communication with the relevant regulatory authorities to seek further clarification regarding a recent development involving our operations”.
“Please be assured that you may continue to operate on the inDrive platform as usual until further notice,” the company said, adding that it remains committed to transparent communication and prioritising the safety and livelihood of its driver community.
“We are closely monitoring the situation and will keep you informed of any important updates. Your safety, livelihood, and trust remain our top priorities, and we are committed to providing transparent communication every step of the way.”
The notice from the company assuring drivers of uninterrupted operations was circulated widely on driver community groups on social media, following news that inDrive had been given three months to return its Intermediation Business Licence (IBL).
On Friday, Scoop reported that APAD had served inDrive with a termination notice and given it three months to return its IBL due to alleged non-compliance with regulations introduced in 2019.
Sources told Scoop that the company had been issued several show-cause letters before the revocation notice, with authorities citing failures to ensure its drivers possessed valid Public Service Vehicle (PSV) and E-Hailing Vehicle Permit (eVP) licences.
There were also mounting concerns over safety, following a rise in incidents involving drivers from the platform.
In a separate statement to Bernama, inDrive confirmed it had “proactively reached out to the relevant agencies to understand the situation better and take the necessary actions” to ensure continued service in Malaysia.
“We are committed to providing safe, reliable and accessible mobility solutions to the tens of thousands of people across Malaysia who rely on our platform every day,” it said.
“We will provide updates once we have received further clarity from the authorities.”
The IBL is a mandatory licence for all e-hailing operators under Malaysian law. Failure to comply may result in the company being forced to cease operations.
This marks the second enforcement action against a Russian-founded e-hailing service. In 2023, Apad revoked Maxim’s licence for similar regulatory breaches, including allowing vehicles to operate without valid eVPs during enforcement exercises in Putrajaya and Kuantan.
inDrive, formerly known as inDriver, entered the Malaysian market in late 2021 and currently operates in Kuala Lumpur, Selangor, Penang and Johor Bahru. Earlier this year, it announced plans to surpass 40,000 registered drivers nationwide by the end of 2025.
The platform distinguishes itself from competitors like Grab with its “name-your-price” feature, allowing passengers and drivers to negotiate fares before confirming a ride – a peer-to-peer pricing system that has attracted a loyal user base.
Founded in 2012 in Yakutsk, Russia, inDrive has since expanded across Latin America, Africa, Asia and the Middle East, offering services that include passenger rides, courier deliveries and cargo transport.
For now, operations continue – but the company has three months to respond to APAD’s notice or risk being forced off Malaysian roads. – May 4, 2025