The right of consumers to safety cannot be compromised because of the low fares and generous promotions the app-based transportation providers are offering.
he government clearly took public interest into account when last week it revised a regulation governing the ride-sharing transportation industry despite strong protests from ride-hailing apps Go-Jek, Grab and Uber. The government’s commitment to enforcing the regulation therefore deserves support.
The amendment, to be effective on April 1, followed nationwide protests from drivers of conventional taxi companies, whose business has been disrupted by the operation of transportation providers that maximize online applications to cut costs. Clashes unfortunately have erupted between drivers of the two competing players.
The broad revision includes stipulations covering the minimum engine capacity to be used by app-based taxis, road worthiness, tax payments, fare restrictions and fleet quotas for app-based taxis in each city. Transportation Minister Budi Karya Sumadi said the changes were made to better protect consumers and ensure fair competition between ride-hailing and conventional transportation providers.
We can’t agree more to the government’s efforts to improve the safety of passengers as the minimum condition that all app-based transportation providers have to meet. Their cars, for example, must be easily identified by use of stickers and undergo regular roadworthiness checks.
The right of consumers to safety cannot be compromised because of the low fares and generous promotions the app-based transportation providers are offering. In the urban transportation industry safety control mechanisms are a must, not only to avoid road accidents but also crimes.
The controversial points of the revision are an imposition of price floors and ceilings on online taxis and a quota system to limit the numbers in a ride-sharing fleet.
We are not sure if the price controls and fleet restrictions could work in an industry that has long followed market mechanisms. Any attempt of the state to intervene with the market will be a waste of time and undermine the industry itself.
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