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Ride-hailing apps, conventional taxis must compete fairly
Transportation Minister Budi Karya Sumadi has stressed that both ride-hailing apps and conventional taxi companies have to be ready to compete fairly to ease tension among drivers of both transportation modes as clashes were frequently occurring in many regions.
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Thousands of taxis from different operators are parked on Jl. Gatot Subroto in South Jakarta to block the road during a demonstration to protest the operation of ride-hailing apps. They said the operation of the public transportation is illegal and against fair competition laws. (thejakartapost.com/wienda parwitasari)
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ransportation Minister Budi Karya Sumadi has stressed that both ride-hailing apps and conventional taxi companies have to be ready to compete fairly to ease tension among drivers of both transportation modes as clashes were frequently occurring in many regions.
He said the revision of Transportation Ministerial Regulation No. 32/2016 on non-route public transportation (taxi) 1 is to regulate fair competition between the two groups.
“You (ride-hailing apps companies) must not take all the business. You have to be ready to fairly share the cake,” Budi said as reported by tribunnews.com on Monday.
(Read also: Ride-hailing apps given until August to abide by rules)
He said current practices of ride-hailing apps were not fair to conventional taxi companies as the operators of the former could decide the fares – reducing the rates to attract passengers during the normal time, but increasing them during the peak hours.
“There is no fair competition. Therefore, we are regulating it,” he added.
The new regulations include deciding a service fare floor and ceiling and fleet quota for ride-sharing app partners. The floor fare for the services will ensure the safety of consumers and reduce "fare wars”. Meanwhile, a fare ceiling is intended to protect consumers from extreme ride-hailing app fare surges during peak hours.
Major ride-hailing apps—Go-Jek, Grab Indonesia and Uber— have strongly opposed some of the proposed points, such as pricing and fleet quota, which they consider “having no relation whatsoever to safety,” according to their joint statement last Friday.
Although the regulation will be effective from next month, but the government will only start punishing violators in August. (bbn)
