[JAKARTA] Hundreds of taxi and delivery drivers joined protests in several cities across Indonesia on Tuesday (May 20) over low wages and to oppose a planned merger between the country’s largest tech company GoTo and US-listed ride-hailing rival Grab.
Ride-hailing and delivery services, especially by motorcycle, are a critical part of the transport landscape in South-east Asia’s largest economy, especially in big cities. GoTo’s unit Gojek, which has more than 3.1 million motorcycle drivers on its books, and Singapore-headquartered Grab have dominated the Indonesian market for years.
Drivers gathered in the early afternoon near the president’s office, parliamentary buildings, and the office of the transport ministry in Jakarta, dressed in their trademark green jackets and helmets.
They delivered fiery speeches through loudspeakers, waved flags and held up posters criticising what they said were unfair and exploitative company policies. Drivers, who say they typically make between 100,000 rupiah (S$8) and 150,000 rupiah for 10 to 12-hour day, also rode in a convoy through some of the capital’s major streets.
GoTo said in a statement it was open to drivers’ input but reducing the company’s share of fares was not a solution. On the merger plan, it said it had received proposals from various parties but had “not made any decision.”
Grab respects drivers’ rights to express opinions, the chief of public affairs for its Indonesian unit, Tirza Munusamy, said. On the merger plan, she said “the speculation was not based on verified information”.
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Drivers asked the government to ensure they received 90 per cent of the fare from each trip, Raden Igun Wicaksono, the head of the online motorcycle driver association, told Reuters.
Under current regulations, companies are supposed to take no more than 20 per cent of the fare, but Wicaksono said that sometimes the companies took more.
“There is no sanction in the regulation and the government has always been soft on the companies,” he said.
Transportation Minister Dudy Purwagandhi, who met company representatives on Monday to discuss the issues, acknowledged the drivers’ concerns over the level of commissions and said in a statement that the government was evaluating the scheme.
Grab and GoTo said they take a commission on fares as regulated by the government.
Protests took place in cities, including Surabaya, Bandung, Yogyakarta, and Semarang on the country’s main Java island, local media reported.
Sunardi, 47, who joined the Jakarta protest, said company offers of discounted fares had also reduced driver incomes and called for an end to the practice.
The drivers said they feared a merger between GoTo and Grab would result in a “monopoly” and lead to layoffs as well as “predatory prices” for consumers, said Wicaksono.
Grab is looking to strike a deal to take over GoTo in the second quarter, two sources with knowledge of the matter told Reuters earlier this month.
If the merger goes ahead it would create a regional ride-hailing giant with around 85 per cent of the US$8 billion market, according to data analytics firm Euromonitor International. REUTERS
