Indonesia has set minimum and maximum tariffs for online car-hailing services, aiming to ensure comparable pricing with conventional transport providers whose drivers have complained about being undercut by their newer competitors. Ride-hailing services such as U.S. group Uber Technologies Inc, Southeast Asia's Grab and Indonesia's GO-JEK have heavily subsidised their drivers in Indonesia in order to gain market share in the country of 250 million people, analysts say. The transport ministry said it had set a tariff range for online car-hailing services of 3,500-6,000 rupiah ($0.26-$0.45) per kilometre for the islands of Java, Bali and Sumatra. Indonesia's two biggest established taxi operators are PT Blue Bird Tbk and PT Express Transindo Utama Tbk , whose shares have fallen on investor concerns about competition from the cheaper ride-hailing services. Drivers of Blue Bird and Express have called for a ban on ride-hailing services, claiming they were subject to less stringent requirements than conventional taxis.

Source: dna July 02, 2017 10:41 UTC