Grab vs Gojek Tariff War Unfeasible for the Industry, says Expert
Translator
Ricky Mohammad Nugraha
Editor
Laila Afifa
Rabu, 27 Februari 2019 21:01 WIB
Online taxi drivers from Gojek, Grab, and Bluebird gathered in a national gathering with President Jokowi at Hall A Jiexpo Kemayoran, Central Jakarta, January 11, 2019. Tempo/Fajar Pebrianto
TEMPO.CO, Jakarta - An industrial economic expert views that the relentless ongoing tariff war between two major app-based transport service providers, Grab and Gojek, could potentially threaten the feasibility of the digital business industry.
“The current condition is already unhealthy for the digitally-based transport service industry. They must be aware that sooner or later [the competition] will threaten the sustainability of the industry,” said Padjajaran University industrial economic expert Maman Abdurahman on Wednesday, Feb. 27.
He argues that the industry’s major actors should compete in a healthier way through innovation and consumer service quality improvements. This way, he says, consumers will reap true benefits from the companies’ abilities.
“App companies that lack innovation will surely depend on its financial ability to create a tariff war,” said Maman.
Maman acknowledged that the tariff war between Grab and Gojek is economically potent in the short-run, but reminds that it would not last forever and can potentially create a single dominant player that would control the market.
