Innovation of the taxi system from Malaysia

Innovative taxi application in Malaysia

In order to improve the taxi system of the Klang valley in Malaysia, an innovative solution has been implemented through the use of new technologies. Thanks to a mobile application, passengers and taxi drivers can now benefit from a better way of managing their journeys in the Kuala Lumpur region.

Innovating in taxi-passenger matching through new technologies

Thanks to new technologies a clever solution has been implemented to improve the use and experience of taking a taxi in the Kuala Lumpur region, both for passengers and drivers. Here are the details of how the innovation took place, going through initial problems for the different people involved and implementing the solution.

Problems with taxis in the Kuala Lumpur region

In the Klang Valley of Malaysia (Kuala Lumpur region), there are 37 000 taxis, for a ratio of 4.8 taxis per 1000 people. Yet managing to get a taxi is not always easy, and fares often need to be negotiated with drivers that don’t use their meters.

Passengers need to be sure they can find a taxi and will be able to reach their destination on time, and that they will be safe all along the journey. Taxi drivers are not eager to use the radio service as they have to compete with each other to get passengers.

Solving taxi problems with a mobile application

The idea to improve the system came from the use of mobile devices and their GPS systems, which enable a better matching of passengers with taxis. MyTeksi, the app created to take advantage of new technologies and improve the system, increases certainty, convenience and safety for both passengers and taxi drivers.

The application managers charge the taxi drivers exclusively, so it’s not a burden for passengers to use the app. The fees levied on drivers are only applied when they get a customer or on a monthly basis with a capped fee that is lower than the costs from radio taxi companies.

Feedback from taxi drivers and passengers

For the taxi driver, the application helps them earn more because they can find passengers more easily, depending on their current position. This allows them to cut time and costs of fuel between rides.

For passengers, the safety is an important benefit (especially for women) because the taxis are identified through the app, thus greatly limiting potential misconducts. The certainty of getting a taxi once they have confirmed the ride is also a great improvement.

Application summary: win-win-win!

  • The creators of the application earn for making and managing the application.
  • The taxi drivers get regular customers without price discussion.
  • The passengers get to their destination in a faster, more certain and more secure manner.

A bit more than one year after, this innovation seems to have been quite succesful as it has now expanded to 5 other ASEAN countries (Philippines, Thailand, Singapore, Vietnam and Indonesia) through the brand Grab Taxi.

Video published in August 2013 by PemanduETP on Youtube

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