Online Ride-Hailing Service Benefits Society, Tougher Rules Should Be Reconsidered: Study

GrabBike drivers wait for passengers in Pasar Minggu, South Jakarta. (B1 Photo/Danung Arifin)

By : Amal Ganesha | on 7:52 PM May 08, 2017
Category : Business, Corporate News

Jakarta. Online ride-hailing service has increased quality of life in Indonesia, offering more job opportunities for drivers and increasing productivity of people who use the service by up to 91 percent, a study by University of Indonesia's Center of Communication Studies, or Puskakom, showed.

The study recommended the government should reconsider changing regulations that make it harder for the service to survive.

The study was conducted in April by Puskakom, when 6,014 Go-Jek drivers and 4,048 Go-Jek customers were interviewed.

According to the study, most of the Go-Jek drivers earn an income above the national minimum wage and the customers said their productivity was up by 91 percent from using the service.

The study claims its margin of error was below 2 percent.

The study also said that female customers consider online ride-hailing services like Go-Jek a safer option than traditional transport services.

"The government should go to bat for the customers. I don't know why they [the government] have been less than enthusiastic about Go-Jek," Puskakom researcher Alfindra Primaldhi said at a press conference in Jakarta on Monday (08/05).

New regulations released recently forced Go-Jek and rivals Uber and Grab to impose minimum fare caps, which make it harder for them to offer discounted fares for customers.

Go-Jek itself is not too bothered by the fare caps. Its main concern is that drivers object to many of the new requirements to join a ride-hailing company, especially the rule that makes it compulsory to register their vehicles with a legal entity instead of under their own name.

"Our drivers hate having to convert their STNK [vehicle registration] and KIR [roadworthiness certificate] to non-individual ones," Go-Jek Director Monica Oudang said.

"Of the five new rules, the STNK and KIR requirements will definitely create the most problems for us," she added. "The government should reconsider the regulations, for the sake of the customers and also our drivers."

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