Ride-hailing incentive structures raising road safety concerns, industry figures warn

A recent Facebook post alleging that ride-hailing operators are telling drivers to complete 10 trips per hour has reignited discussion around safety and incentive structures within Malta’s ride-hailing sector.

The post, shared in popular Maltese Facebook group ‘Are You Being Served?’, claimed that some drivers ask passengers for their destination before accepting rides and may cancel trips that are not considered financially worthwhile. It also alleged that certain driver targets and reward systems are encouraging unsafe behaviour on the roads.

Speaking to BusinessNow.mt, eCabs Malta CEO Andrew Bezzina said the company has “consistently advocated for clear and balanced regulation around discounting and incentive practices targeting both riders and drivers.”

“Large-scale rider promotions, such as heavily discounted fares, distort competition by overwhelmingly favouring the platforms with the deepest pockets such as Bolt and Uber,” Mr Bezzina said.

“This is not sustainable competition based on efficiency or service quality, but a financial war of attrition where smaller local platforms are pushed out regardless of operational standards.”

He added that these market practices can also negatively affect drivers themselves.

“In many cases, these practices also place downward pressure on driver earnings and create unsustainable market conditions,” he said.

Mr Bezzina also raised concerns regarding driver-focused incentives.

“The same concerns apply to driver incentive campaigns. Certain incentive structures used by ride-hailing platforms in Malta create excessive pressure on drivers to maximise trips or hours worked within limited timeframes,” he said.

“Inevitably, this encourages speeding, dangerous driving behaviour, fatigue, and a deterioration in service quality.”

He argued that prolonged regulatory inaction risks worsening market imbalances over time.

“More broadly, when regulators allow large-scale illegalities or regulatory grey areas to go unchecked for prolonged periods, the outcome becomes self-reinforcing,” Mr Bezzina said.

“The perpetrators generate even greater financial resources through these practices, which are then reinvested into more aggressive discounts, incentives, and further market distortion.”

Mr Bezzina said persistent discounting and incentive campaigns may indicate deeper structural issues within the sector.

“Persistent rider discounts and continuous driver incentives over extended periods are not signs of a healthy or balanced market,” he said.

“They are often indicators that genuine market equilibrium has not been reached, and that prices and driver earnings are being artificially manipulated as part of a long-term strategy to dominate the market rather than compete fairly.”

BusinessNow.mt also spoke to the Light Passenger Operators Association, who warned that incentive structures tied to ride volumes are contributing to safety risks on Maltese roads.

A spokesperson from the association said that some bonuses and reward schemes are offered even during rush hour periods, creating additional pressure on drivers to complete trips as quickly as possible.

According to the association, one possible solution would be to move towards a system where drivers are paid a fixed hourly income rather than relying heavily on ride-based targets and incentives, a move that is already in place by some companies. “Like that a driver doesn’t have to worry about how many trips they complete in an hour,” they say.

They added that drivers are not aware of the destination nor the price of the ride before accepting, and called on authorities to make this transparent to the drivers. Authorities, however, do not wish to implement this as they say that it could result in more trip cancellations if a driver does not see the trip worthwile.