The Ministry of Transportation has urged ride-sharing companies, also known as online taxis, to comply with regulatory requirements to ensure fair competition with conventional taxi operators. (Antara Photo/ Zabur Karuru)

GrabTaxi Enters Jakarta's Motorcycle Taxi Service Market


MAY 20, 2015

Jakarta. Malaysia's GrabTaxi is adding motorcycle jockeys to its services in Jakarta on Wednesday, as part of an expansion to cater to Indonesia's rapidly growing urban population. 

The Kuala Lumpur-based startup, which connects taxi drivers with customers through a smartphone application, rolled out the trial run of its "GrabBike" service starting Wednesday. The service focuses solely on motorcycle taxis, better known as ojek, according to a statement on Wednesday.

"GrabTaxi is strongly committed to create a safe and efficient transportation system in Southeast Asia. Ojek is a very popular mode of transportation in Indonesia, so [our entry] was only a matter of time," Cheryl Goh, vice president of marketing at GrabTaxi Holding Group, said in a statement.

Under the trial version, the pickup service is currently limited to the business districts of South Jakarta – Kuningan and Setiabudi – although delivery or courier services will be available across the capital city in the future, according to the statement.

Jakarta is the third city where GrabTaxi is rolling out its GrabBike service, after Ho Ci Minh City and Hanoi in Vietnam last year.

GrabTaxi's GrabBike service will be competing head to head with homegrown startup Go-jek, which has connected ojek drivers to customers for services ranging from transportation to courier since 2010.

GrabTaxi entered Jakarta offering online taxi booking services last June. It has since expanded to Surabaya, East Java and Padang, West Sumatra.

First established in Kuala Lumpur three years ago, GrabTaxi boasts an application that has been downloaded more than 4.4 million times while more than 83,000 customers and drivers are using its services across Indonesia, Singapore, the Philippines, Vietnam and Malaysia.