TEMPO.CO, Jakarta - Indonesia stock exchange (IDX) economic researcher Poltak Hotradero argues that the government should produce a rule to help control the promo war offered by online taxi companies for the sake of healthy competition.
“There is no need for the government to intervene how online taxi service providers determine their tariff,” said Poltak in Jakarta on Tuesday, May 7, following the rampant promo war even just one day after the government implemented the new tariff regulation in May.
Online transportation service providers actually fiercely offered promo tariffs to customers.
He views that the government intervention toward how companies set their tariff had created a new problem in the form of an all-out promo war.
“Once the promo war wages, the end only depends on which company has the largest financial backing. The weak will surely die,” he said.
The researcher said that there is no gain in increasing the tariff of online-based ride-hailing services and argues that the Transportation Ministry had overly-intervened with the business which eventually created rules that only paved the way to new problems and the dropping interest from customers upon using the services of this industry.