Grab's cross-border carpool service is illegal, if you pay for it

Land Transport Authority says the rides are only legal if no money changes hands

Grab's been heavily promoting a ride-sharing service that will take passengers from and to Singapore from Johor Bahru. There's only one hitch: the Land Transport Authority says it's illegal. Well, only if fees are charged for it.

Currently a free pilot programme is being run, allowing people to try out the cross-border service. Once Grab starts charging, though, the Land Transport Authority (LTA) might have to step in.

Responding to Channel NewsAsia's enquiries, the LTA said that Malaysian-registered cars cannot provide hire-and-reward services in Singapore without a public service vehicle license. Malaysia imposes similar regulations on Singapore-registered cars.

If a person is caught by the LTA for using a foreign-registered vehicle as a public service vehicle without a license, the driver could face a fine of up to $3,000 and jailed up to six months.

It's understandable why Grab sees an opportunity in the land border crossing, officially the busiest in the world with over 400,000 people making the crossing daily.

Our advice? Until Grab's sorted out the legal issues, best to hold off registering as a Grab driver unless you fancy paying a heavy fine for the privilege.

[Source: Channelnewsasia]