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Indonesia to solve Grab, Uber dispute this week
Taxi drivers are waiting for passengers amid âunfair competitionâ with the new trend of ride-hailing apps that they say have led to a drastic drop of their incomes
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Taxi drivers are waiting for passengers amid âunfair competitionâ with the new trend of ride-hailing apps that they say have led to a drastic drop of their incomes. Two thousand drivers held a rally on Monday demanding the government ban the application-based transportation system. (Tempo/Dwianto Wibowo) (Tempo/Dwianto Wibowo)
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span class="inline inline-center">Taxi drivers are waiting for passengers amid 'unfair competition' with the new trend of ride-hailing apps that they say have led to a drastic drop of their incomes. Two thousand drivers held a rally on Monday demanding the government ban the application-based transportation system. (Tempo/Dwianto Wibowo)
The government will solve the dispute over ride-hailing apps this week as Grab and Uber to have agreed to establish business entities, Indonesian Communications and Information Minister Rudiantara claimed.
'I did a short roadshow with all stakeholders to solve the problem by this week,' Rudiantara told thejakartapost.com on Wednesday.
Rudiantara said his ministry has intensively been in touch with the Transportation Ministry and the Cooperatives and Small and Medium Enterprises Ministry to speed up the process of obtaining the business permits for the two.
'Grab and Uber, as transportation companies, have agreed to establish a cooperative for their affiliations,' he asserted.
Ridzki Kramadibrata said Grab, as an application service company, hailed the government's initiative to find the best solution for the transportation sector in Indonesia by establishing a business entity as an umbrella for Grab-affiliated drivers and car owners.
'The most suitable business entity for them is a cooperative,' Ridzki said, adding that the cooperative would then collaborate with Grab.
Ridzki said the upcoming cooperative, namely the Indonesian Car Rental Entrepreneurs Association, would hopefully solve the transportation system dispute.
The dispute has soared in Jakarta after 2,000 members of the Land Transportation Drivers Association (PPAD) held a rally on Monday, demanding the government ban the ride-hailing smartphone apps that they said have led to a drastic reduction of their revenues.
Malaysia-based Grab and US-based Uber have been at the center of a series of debates over the past year. Drivers of ojek (motorcycle taxis) have also protested against Grab Bike and the homegrown company, Go-Jek, for eroding their market share. (+)
