KUALA LUMPUR – Russian-based inDrive’s statement claiming it was “business as usual” despite receiving a shutdown notice should not have happened, as the Land Public Transport Agency (Apad) already issued them a warning and a notice to cease operations, said Persatuan Penghantar P-Hailing Malaysia (Penghantar).
In a strongly worded statement, the group said the failure to take firm and timely action against illegal e-hailing platforms like inDrive is weakening enforcement credibility and undermining the integrity of Malaysia’s e-hailing industry.
“The fact that inDrive can declare ‘business as usual’ after receiving a closure order is unacceptable. It makes a mockery of enforcement efforts. It is time Apad fulfils its enforcement responsibility more seriously,” said Penghantar in a statement today.
Although Penghantar welcomed Apad’s recent directive for Russian-based inDrive to surrender its licence and cease operations within three months, it criticised the long delay in enforcement and questioned why such platforms were allowed to operate for so long despite numerous complaints from local drivers.
To safeguard public trust and industry standards, Penghantar issued three key demands: for Apad to issue an immediate public clarification on its enforcement actions against inDrive and Maxim, for the Malaysian Communications and Multimedia Commission (MCMC) to block access to both apps immediately, and for the government to demonstrate stronger commitment to driver and passenger safety, and uphold fairness within the gig-based e-hailing sector.
Penghantar also questioned the current “actual” status of another Russian-based platform, Maxim, which was reportedly issued a similar closure notice. It pointed out that both platforms appear to still be operating in defiance of Malaysian laws.
“These platforms not only ignore the law but endanger passengers by allowing unlicensed and uninsured drivers to operate. It’s unjust to drivers who follow the rules and pay for PSV licences, insurance, and vehicle inspections,” it said.
The group also warned of the risk of banned platforms finding ways to circumvent restrictions, as has happened in the past.
“We cannot allow these platforms to find workarounds after being banned. We’ve seen this before – and it weakens both regulation and public confidence.”
Penghantar concluded that continued inaction would not only risk lives but also jeopardise the livelihood of law-abiding drivers and the broader future of Malaysia’s e-hailing gig economy.
“The failure to act decisively risks lives, damages user confidence, and threatens the long-term sustainability of Malaysia’s gig economy in the transport sector,” it said.
On May 2, Scoop reported that Apad had served inDrive with a termination notice and given it three months to return its Intermediation Business Licence (IBL) due to alleged non-compliance with regulations introduced in 2019.
The revocation, effective July 24, follows multiple warnings and show-cause letters for breaches, including allowing unlicensed drivers to operate. inDrive has told its drivers to continue operating while it seeks clarification from authorities. The platform currently operates in Kuala Lumpur, Selangor, Penang, and Johor Bahru.
This marks the second action against a Russian-based e-hailing company. In 2023, Apad revoked Maxim’s licence for similar violations. – May 6, 2025