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Jakarta Post

App-based 'ojek' orders decline in five cities after fare hike

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, May 9, 2019   /   01:34 pm
App-based 'ojek' orders decline in five cities after fare hike A Go-Jek driver transports a passenger. (Shutterstock.com/findracadabra )

Homegrown ride-hailing application Go-Jek has said the number of orders for ojek (motorcycle taxis) has dropped in five cities following the increase in fares on May 1.

The tariff increase was based on Transportation Ministerial Decree No. 348/2019 on calculation guidance for motorcycle taxi fares.

“We saw a decline in orders because of higher fares,” said Go-Jek chief of corporate affairs Nila Marita on Wednesday as reported by tempo.co.

Read also: App-based ride services boost connectivity, business opportunities: Experts

Nila could not explain the details of the decline, but she stressed that the decline in orders occurred in five cities -- Jakarta, Bandung, Yogyakarta, Surabaya and Makassar – among the largest cities in the country.

Nila stressed Go-Jek will communicate with government officials and the Transportation Ministry, which will carry out an evaluation on the regulation.

“We hope the trial [of the new rates] will be evaluated. We will convey the results [to the government] so that it can help inform and shape regulations,” she added.

The new fare under the decree was an increase of 11 to 20 percent on the previous rates imposed by ride-haling application providers.

The fares are differentiated into three zones. The first zone covers Sumatra, Bali and most of Java, the second zone is Greater Jakarta and the third zone is Sulawesi, Nusa Tenggara, Maluku and Papua.

The minimum fares have been set at Rp 1,850 (13 US cents), Rp 2,000 and Rp 2,100 per kilometer for the first, second and third zones respectively, while the maximum fares were set at Rp 2,300, Rp 2,500 and Rp 2,600.

Meanwhile, the base fares for services of less than 4 kilometers were set at Rp 7,000 to Rp 10,000 for the first and third zones and from Rp 8,000 to Rp 10,000 for the second zone. (bbn)