Drivers of Public taxi services need to provide better quality services in order to compete with online taxi services such as Grabcar and Uber said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

He said numerous complaints had been received from locals as well as tourists over the poor quality of public taxi operators which forced them to choose alternative taxi services.

"People are frustrated with high prices charged by taxi drivers, as well as taxi drivers choosing their own route and lack of cleanliness. Due to that, people are likely to use Uber and Grabcar," he told reporters after witnessing the signing of an agreement between Harmoni Perkasa Sdn Bhd and Banyan Tree Hotels and Resort, here Wednesday.

On Tuesday, about 300 taxi drivers staged the a protest to battle against the ride-hailing apps services, causing a two-hour traffic congestion along Jalan Bukit Bintang, leading to the arrest of five taxi drivers who failed to heed warnings from the police.

The protesting taxi drivers parked their vehicles in the vicinity of the Pavilion shopping mall, forcing police to divert traffic, from the area.

Tengku Adnan said, the Kuala Lumpur City Hall had no authority over taxi drivers because it falls under the Land Public Transport Commission (SPAD).

Earlier, Harmoni Perkasa Sdn Bhd and Banyan Tree Hotels and Resorts signed a hotel management agreement for its new five-star 'Royale Pavilion Hotel' located in a prime area of the Golden Triangle in Kuala Lumpur.

Being developed at a cost of RM330 million, the hotel is slated to open by the second quarter of 2017.