Indonesia to fix motorbike ride-hailing rates; may hurt Grab, Go-Jek

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Indonesia to fix motorbike ride-hailing rates; may hurt Grab, Go-Jek
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JAKARTA: Indonesian authorities mandated on Monday (Mar 25) that ride-hailing motorcycle service providers will only be able to charge rates ...

JAKARTA: Indonesian authorities mandated on Monday that ride-hailing motorcycle service providers will only be able to charge rates within a fixed band, a move that could put hurdles in the expansion plans of Go-Jek, Grab and other ride-hailing firms.

"This is to protect the interests of drivers and consumers," Setyadi said, adding the rates would be higher than the ones currently offered by companies and would be reviewed every three months. Analysts say fixed fares would mean companies' ability to discount may be impacted and they may have to share more with the drivers. It could also make them less competitive with other transport options.Since 2018, motorcycle taxi drivers working for Grab and Go-Jek in Jakarta have held protest rallies calling for higher fares and better conditions.

Indonesia’s Supreme Court blocked a previous transport ministry attempt to fix ride-hailing rates for car and motor-bikes in 2017 after drivers sued saying the rules favoured taxi firms.

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