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Jakarta Post

In ride-hailing craze, discounts great deal for passengers

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Tue, July 23, 2019   /  07:22 pm
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A GrabBike driver picks up a passenger. Singapore ride-hailing giant Grab generated last year a total of Rp 43 trillion (US$3.07 billion) in consumer surplus for its passengers in Greater Jakarta alone, according to a recent study by research firm Tenggara Strategics and think tank Center for Strategic and International Studies.(./.)

Ride-hailing services are favored by people because they help them save money, but the price discounts are raising concerns over the business sustainability of the operators, a forum discussion revealed on Tuesday. Singapore ride-hailing giant Grab generated last year Rp 43 trillion (US$3.07 billion) in consumer surplus for its passengers in Greater Jakarta alone, according to a recent study by research firm Tenggara Strategics and think tank Center for Strategic and International Studies (CSIS). Grab’s total surplus, which is how much less consumers pay for services compared to how much they are willing to pay, combines the surpluses of its two-wheeled GrabBike service (Rp 5.73 trillion) and its four-wheeled GrabCar service (Rp 40.41 trillion). “Imagine taking a taxi to the airport. We are ready to pay Rp 200,000. But by using Grab we can get a ride for Rp 150,000. ...