Grab and Go-Jek feel the heat from disgruntled motorbike drivers

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Hundreds of Indonesian motorcycle taxi drivers working for ride-hailing start-ups Grab and Go-Jek on April 23 called for an end to low online fares and demanded tighter regulation of ride-hailing companies, Reuters reported.

Around 1,500 drivers, wearing the green jackets and helmets associated with Singapore-based Grab and Indonesia’s Go-Jek, briefly disrupted traffic outside parliament in the capital Jakarta.

They said they wanted a standard fare of 3,000 to 4,000 rupiah (22 US cents to 29 US cents) per kilometer.

“There must be legal and social protection for online ‘ojek’ drivers as part of the national workforce,” a group of drivers for both companies said in a statement that used the Indonesian word for motorcycle taxi.

Startups like Grab and Go-Jek have been locked in price wars to capture market share in Indonesia, Southeast Asia’s biggest economy. The firms have slashed prices for car rides, motorcycle trips and a raft of other services.

The transport ministry moved last month to classify Grab and Go-Jek as transportation instead of technology companies. That means they would be subject to the same regulations as regular taxi and bus companies and could potentially face higher costs and scrutiny.

But there were no plans yet to apply the regulations to motorcycle taxis, said Budi Setyadi, director general of land transportation at the transport ministry.

Both Grab and Go-Jek have yet to make significant changes to their tariff structure.

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Reading Time: 1 minute

Hundreds of Indonesian motorcycle taxi drivers working for ride-hailing start-ups Grab and Go-Jek on April 23 called for an end to low online fares and demanded tighter regulation of ride-hailing companies, Reuters reported.

Reading Time: 1 minute

Hundreds of Indonesian motorcycle taxi drivers working for ride-hailing start-ups Grab and Go-Jek on April 23 called for an end to low online fares and demanded tighter regulation of ride-hailing companies, Reuters reported.

Around 1,500 drivers, wearing the green jackets and helmets associated with Singapore-based Grab and Indonesia’s Go-Jek, briefly disrupted traffic outside parliament in the capital Jakarta.

They said they wanted a standard fare of 3,000 to 4,000 rupiah (22 US cents to 29 US cents) per kilometer.

“There must be legal and social protection for online ‘ojek’ drivers as part of the national workforce,” a group of drivers for both companies said in a statement that used the Indonesian word for motorcycle taxi.

Startups like Grab and Go-Jek have been locked in price wars to capture market share in Indonesia, Southeast Asia’s biggest economy. The firms have slashed prices for car rides, motorcycle trips and a raft of other services.

The transport ministry moved last month to classify Grab and Go-Jek as transportation instead of technology companies. That means they would be subject to the same regulations as regular taxi and bus companies and could potentially face higher costs and scrutiny.

But there were no plans yet to apply the regulations to motorcycle taxis, said Budi Setyadi, director general of land transportation at the transport ministry.

Both Grab and Go-Jek have yet to make significant changes to their tariff structure.

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