TRANSPORT
Indonesia pacifies cabbies by setting tariff limits for Uber
Indonesia — Indonesia has set minimum and maximum tariffs for online car-hailing services, aiming to ensure comparable pricing with conventional transport providers whose drivers have complained about being undercut by their newer competitors. Ride-hailing services such as Uber, Southeast Asia’s Grab and Indonesia’s GO-JEK have heavily subsidised their drivers in Indonesia in order to gain market share in the country of 250-million people, analysts say. The transport ministry said it had set a tariff range for online car-hailing services of 3,500-6,000 rupiah ($0.26-$0.45) per kilometre for the islands of Java, Bali and Sumatra. For the islands of Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua, the range is 3,700-6,500 rupiah per kilometre. The regulation kicked in on Saturday and would be evaluated in the next six months, the ministry said. "There has to be a balance between conventional and online transport, so that has to be regulated," said Pudji Hartanto Iskandar, direct...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.