Ride-hailing Assistance Model for B40 Drivers: The Practical Model for Cash Transfer Recipients

Abstract

The Malaysian government strives to support the bottom 40 (B40) group by initiating various cash transfer programs, specifically known as household living aid. In 2017, the government introduced a special car rebate to cash transfer recipients who wished to become ride-hailing drivers to increase their monthly household income and promote self-employment. However, the initiative was reported impractical due to the car model and may send the borrowers into more debt. Its return on investments (ROI) was also questionable. Thus, this research aims to identify the mechanism for ride-sharing assistance for cash transfer recipients. The objective is to develop a practical entrepreneurship model based on government cash transfers specifically for ride-hailing services and the B40 group. This research employed a qualitative method through a semi-structured interview with eight ride-hailing drivers. Using Atlas.ti software, themes were created comprising of initiatives (amount, form, and payment procedures), process (information, selection criteria, and monitoring), car (model, attributes, and maintenance,) and car ownership and financing. This model can contribute to self-employment activities, improve the household income, and ultimately the recipients may find their way out of poverty. More significantly, the government can accurately create the incentive policy and enjoy the ROI in the form of poverty reduction.