Govt Orders InDrive & Maxim To Cease Operations In Malaysia By 24 July. Here's Why
The order comes just a week after Maxim announced its expansion into rural and underserved areas in East Malaysia.
By Sadho Ram — 09 May 2025, 04:58 PM
Two Russia-based e-hailing platforms, InDrive and Maxim, have been ordered to stop operating in Malaysia by 24 July 2025, after authorities found both companies violated key local transport laws
Transport Minister Anthony Loke confirmed that the Land Public Transport Agency (APAD) had issued official letters instructing both platforms to shut down. While the companies are allowed to appeal the order, Loke made it clear that any final decision will be made at his discretion, reported the New Straits Times.
The order comes just a week after Maxim announced its expansion into rural and underserved areas in East Malaysia, positioning itself as a key transportation provider in secondary townships.
So what did they do wrong?
According to APAD, both InDrive and Maxim were found to be operating with multiple serious violations under the Land Public Transport Act 2010 (Act 715), including:
- Using drivers without valid Public Service Vehicle (PSV) licences
- Operating cars without proper e-hailing insurance coverage
- Failing to conduct mandatory vehicle inspections
- Using vehicles not registered under the E-Hailing Vehicle Permit (EVP) system
On top of that, both platforms were also found to be breaching the terms of their Individual Operator Licences (IBLs), a move that gave APAD grounds to issue the cease order under Section 12D(1)(a) of the Act, which allows revocation of licences for non-compliance.
The issue isn't new
E-hailing and p-hailing industry groups have repeatedly raised concerns over platforms that undercut the rules. The Malaysian P-Hailing Delivery Association recently called for enforcement action, accusing both companies of creating unfair and unsafe conditions for riders and passengers alike.
"This is not about targeting foreign companies. This is about enforcing standards and ensuring public safety," Loke said during a press conference earlier today, 9 May.
As of now, neither company has publicly responded to the shutdown order.
