Online Taxi Regulation Proves Complicated
Massive street protests conducted by drivers of app-based motorcycle taxis paralyzed Jl. Medan Merdeka Barat street in Central Jakarta on Tuesday. The drivers demanded the government set a minimum tariff.
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Ride-hailing drivers ride in convoy on Jl. Merdeka Barat to the Presidential Palace in Jakarta for a rally on Tuesday (27/3). They demanded the government regulate fares of online ride-hailing services to prevent price wars to the detriment of drivers.
JAKARTA, KOMPAS — Massive street protests conducted by drivers of app-based motorcycle taxis paralyzed Jl. Medan Merdeka Barat street in Central Jakarta on Tuesday. The drivers demanded the government set a minimum tariff, so that the ride-sharing application providers cannot freely cut the fare to promote their services.
The app providers often run sales promotions to attract customers and gain an edge over competing providers. As a result, driver revenue drops. Moreover, the number of motorcycle taxi drivers continues to increase. Automatically, there is growing competition among the drivers.