Ride Hailing Drivers Reach Fare Agreement: Authorities Step In to Mediate Dispute
Thousands of tuk tuk and taxi drivers in Phnom Penh have reached an agreement with several ride hailing companies after weeks of tension over declining income and rising fuel costs. The breakthrough came after mediation by Phnom Penh Governor Khuong Sreng, who helped bring both sides to the negotiating table. The dispute involved six major ride hailing platforms operating in the capital. After discussions with city authorities, three companies agreed to cap their commission fees at 12 percent and introduce a new base fare of 1,200 riel per kilometre. In return, drivers agreed to stop illegal protests and focus on resolving any future disagreements through dialogue and negotiation. The deal aims to create a more balanced relationship between drivers and digital transport platforms while addressing concerns about shrinking earnings.
Drivers Remain Cautious About Implementation
Although the agreement has been welcomed by many drivers, some remain uncertain about how quickly the changes will be applied on the platforms. Sarom, a tuk tuk driver with six years of experience, said the new base rate has not yet appeared in the system used by the apps.
“Three companies agreed to our conditions, but the 1,200 riel base fare is not yet in the system,” he said. For drivers who rely on these apps for daily income, the timing of the change is crucial. Sarom warned that drivers may continue boycotting companies that fail to comply with the agreed terms if the adjustments are delayed.
Push for Fairer Pricing and Stable Income
Drivers say their main demand is not excessive profits but simply a fair and sustainable fare structure that reflects rising living costs. According to Sarom, competition among ride hailing companies over the years pushed fares down significantly as platforms attempted to attract more passengers.
“We don’t want anything extra. We just want back the old rate of 1,200 riel per kilometre. Over time, the companies competed for passengers by lowering prices, and the base fare dropped to around 900 to 1,000 riel,” he said. With fuel prices and daily expenses steadily increasing, drivers argue that the 1,200 riel base rate is necessary for them to maintain a basic livelihood. “If the fare is not raised, we cannot survive. Everything is more expensive now, especially gas. The 1,200 riel rate is reasonable,” he said.
Drivers Call for Continued Government Mediation
Drivers are also looking to local authorities to ensure that the agreement is respected by all parties involved. Sarom emphasized that many drivers are simply trying to earn enough to support their families rather than seeking large profits.
“Today we earn just enough to survive day to day. We are not asking for too much. We are not driving to become tycoons,” he said. He added that drivers would follow the governor’s guidance that companies failing to comply could face ongoing boycotts. Meanwhile, Phnom Penh City Hall spokesman Dor Samphors declined to comment on the issue.
New Rules for Ride Hailing Platforms
According to a statement from the Phnom Penh administration, ride hailing companies have also been instructed to formalise clear operating policies and transparent fare structures. The companies must establish internal disciplinary councils and conduct thorough investigations into passenger complaints before taking action such as suspending driver accounts. Authorities also require the platforms to cooperate fully with law enforcement in cases involving serious criminal offences. These measures are intended to strengthen accountability within the industry while ensuring fairness for both drivers and passengers.
Background of the Driver Boycott
The conflict began in late January when thousands of tuk tuk and taxi drivers stopped accepting ride requests through app based platforms. Drivers said their incomes had fallen sharply as fares declined while fuel, vehicle maintenance, and daily living expenses continued to rise. The boycott quickly drew public attention and prompted city authorities to intervene in order to prevent further disruption in urban transportation services. The recent agreement represents an important step toward stabilising relations between drivers and ride hailing companies in Phnom Penh.
Conclusion
The agreement between drivers and ride hailing companies marks a significant moment for Phnom Penh’s growing digital transport sector. While the deal provides hope for fairer fares and more sustainable earnings, drivers are closely watching to see whether the promised changes will be fully implemented. Continued dialogue and government oversight may play a crucial role in ensuring that the new rules lead to a more balanced system that benefits drivers, companies, and passengers alike.