Gojek gets green light for Malaysia test runs despite backlash

The six-month, proof-of-concept pilot programme will allow the government and participating firms to gather data and evaluate demand

Critics have accused the Malaysian government of relying on ride-hailing services as a substitute for comprehensive infrastructure planning

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Gojek’s impending entry into Malaysia will likely pose the biggest challenge to Grab, which took the lion’s share of the nation’s e-hailing market after it bought Uber’s operations in Southeast Asia last year. photo: AFP

Published: 2:40pm, 5 Nov 2019Updated: 9:55pm, 5 Nov 2019

Malaysia will allow motorcycle-hailing firms such as Indonesia’s Gojek and local start-up Dego Ride to begin operations on a limited scale from January 2020, Malaysia’s transport minister said on Tuesday, despite criticism of their introduction.

Gojek’s backers include Alphabet’s Google and Chinese tech companies Tencent and JD.com. Both Gojek and Dego Ride will start operating based on a proof-of-concept basis to measure demand for the service over six months, Anthony Loke Siew Fook said.

“Bike hailing will be an important component in providing a comprehensive public transport system, as a mode for first- and last-mile connectivity,” Loke told parliament.

The pilot project would be limited to the Klang Valley, Malaysia’s most developed region and where the capital Kuala Lumpur is located, although the government would consider expanding it to other areas if there is sufficient demand.

The six-month, proof-of-concept pilot programme will allow the government and participating firms to gather data and evaluate demand, while the government worked on drafting legislation to govern bike-hailing, Loke said.