KUALA LUMPUR: After being banned from operating due to safety concerns by the previous Barisan Nasional administration four years ago, the Dego Ride motorcycle taxi service has returned to Malaysian streets.
The local start-up – which will service the Klang Valley, Shah Alam and Putrajaya – was given the green light to operate by the Pakatan Harapan government in a recent move to introduce bike e-hailing services in the country.
Youth and Sports Minister Syed Saddiq Syed Abdul Rahman said that opening the door to ride e-hailing services will create employment opportunities for youth, especially those from the B40 group.
He added that ride e-hailing services can become a catalyst for developing a new industry and stimulate the nation’s economic growth.
“Today, Jan 1 of 2020, marks a historic day for Malaysia, which sees the beginning of the ride (bike) e-hailing service in the country.
“As the minister in charge of looking after the welfare and wellbeing of youth, I am happy that local-based company (Dego Ride) is being led by a young and proud Malaysian.
“The company is also creating employment opportunities for youth who have motorcycles and are mostly from B40 families.
“Gone are the days when we organised one-off programmes to elevate the socio-economic wellbeing of youth. It is time for us to find a way to move them forward,” Syed Saddiq said in his speech at the launch of the service at the Dego Management Office here, today.
Present were Dego Ride founder and chief executive office Nabil Feisal Bamadhaj and the business operations manager Syed Muhammad Abu Bakar.
“Congratulations to the people at Dego Ride, as I was informed that they will create 5,000 employment opportunities for youth.
“I was also told that (riders) could earn between RM1,500 and RM3,000 in monthly income,” he said.
Syed Saddiq also cited the impending arrival of two international motorcycle e-hailing companies – Gojek and Grab – to the industry.
“At the same time, I would like to say that it will not be an easy time for you (Dego Ride). You will have competitors. You have Grab and Gojek, two international players,” he said.
Syed Saddiq later told reporters that he is unsure if there are other companies joining the bike e-hailing service industry.
“I am not sure about other companies. My interest today is to see a local start-up, headed by a Malaysian, succeed,” he added.
Dego Ride was declared illegal in 2017 by then-Deputy Transport Minister Datuk Abdul Aziz Kaprawi.
After the change of administration in Putrajaya following the 14th general election in May 2018, Dego Ride’s service was reconsidered.
In Sept 2019, Transport Minister Anthony Loke announced that the government will allow ride-hailing firms, including Indonesia’s Gojek, to start motorcycle hailing operations on a limited scale beginning this month.
Loke had said that ride-hailing firms will be able to run their operations on proof-of-concept (POC) for six months in Kuala Lumpur to prepare and test their service.