Wednesday, 20 November 2019

Online Taxi Tariff Hike Likely Raise Private Vehicle Use: RISED

Translator:

Editor:

Petir Garda Bhwana

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, JakartaThe Research Institute of Economic Development (RISED) published its study result on online taxi or locally known online ojek. The tariff hike of online taxi, it noted, would likely trigger an increase in the use of private vehicles.

    “The increased fee of online ojek will encourage consumers to again use private vehicles, and so it will lessen the use of public transportation,” said the RISED team head, Rumayya Batubara, in a press conference regarding the study result in Jakarta, Monday, February 11.

    Read also: Govt Urged to be Firm in Imposing GPS Ban While Driving

    Rumayya, who is also an economist from the University of Airlangga, said that consumers have a sensitive sentiment about every possibility of the tariff hike. “The increase potentially drops the consumer demand up to 71.12 percent,” she said.

    Based on the RISED analysis, the average mileage of consumers is 8.8 kilometers per day. If the fee of online taxi rose to Rp3,100 per kilometer from previously Rp2,200 per kilometers, each consumer will spend more Rp7,920 per day.

    The former head of the Indonesian Consumer`s Foundation (YLKI), Zumrotin K Susilo, seconded Rumayya’s statement, adding that price is always a vital consideration for consumers in choosing a service or product. If the tariff of online taxi raises dramatically, consumers will probably utilize private vehicle, and that will pack city roads.

    ANTARA