TS,Thursday March 19, 2009 in StarBiz
In reference to the Monday Starters column “Taxi tales for the soul” (StarBiz, March 16),
it is true that budget taxi drivers pay up to RM50 per day to taxi companies (they are not employers),
but a large part of it goes to the payment of the car under a loose “rental-purchase” scheme.
it is true that budget taxi drivers pay up to RM50 per day to taxi companies (they are not employers),
but a large part of it goes to the payment of the car under a loose “rental-purchase” scheme.
Once the car is paid up, say for example after three years, the rate is calculated at RM18 per day,
which I am paying right now.
which I am paying right now.
With some incentives, the average per day drops to RM16.62 (actual figure based on one whole
year) for paying the taxi company for the use of the permit, third party insurance, and refund of the
bi-annual inspection fees.
year) for paying the taxi company for the use of the permit, third party insurance, and refund of the
bi-annual inspection fees.
Therefore, taxi drivers with their own permits save less than RM18 per day plus interest charges
for the car loan, as the hire purchase rate is lower than rental purchase.
for the car loan, as the hire purchase rate is lower than rental purchase.
They will have to pay a high insurance premium for comprehensive cover for their taxis. If given
exemption by the finance company, they can buy third party cover but run the risk of losing the
car if it is totally wrecked.
exemption by the finance company, they can buy third party cover but run the risk of losing the
car if it is totally wrecked.
On the other hand, taxis can be returned to taxi companies at any time, whether in one or more
pieces with the driver just walking away (assuming he is injury free).
pieces with the driver just walking away (assuming he is injury free).
I hope my balanced view can correct some misconception that major problems involving taxi
drivers and services can be solved by granting permits to the drivers. There are many important
factors and variables.
drivers and services can be solved by granting permits to the drivers. There are many important
factors and variables.
Incidentally, I made a presentation to the Malaysia Productivity Centre last year on
“Taxi Issues and Proposals”. My article, “Revise taxi fares to benefit all”, was published by
The Star on Oct 20, 2007.
“Taxi Issues and Proposals”. My article, “Revise taxi fares to benefit all”, was published by
The Star on Oct 20, 2007.
I am still driving the budget taxi which I took delivery of in August 2004 and prefer to do
part-time work whenever I can, as the net income of a budget taxi driver ranges from RM1,000
to RM2,000 only. An accident can wipe off the entire month’s income.
part-time work whenever I can, as the net income of a budget taxi driver ranges from RM1,000
to RM2,000 only. An accident can wipe off the entire month’s income.
I will not recommend anyone who wishes to raise a family to drive a taxi. It is great for retired
people to keep active.
people to keep active.
Together with the premier taxis I have driven since 2000, I have clocked over 500,000km driving a taxi.
YS Chan, Kuala Lumpur
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