Thursday, 27 February 2020

Go-Jek: Online Ojek Promotion, Discount will not Last



Laila Afifa

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  • TEMPO.CO, JakartaSince the new tariff of an online-based motorcycle taxi or online ojek applied on May 1, 2019, a number of ride-hailing companies took several anticipative measures to prevent from the loss of the number of passengers, including Go-Jek.

    Go-Jek Chief Corporate Affairs Nila Marita admitted that several promotions and discount programs to attract consumers during the past few days were reduced following the increasing rate.

    “So we establish various interesting programs,” said Nila when met in Central Jakarta, Wednesday, May 8.

    However, according to Nila, discounts and promotions could not last for a long period because those might affect the company’s financial condition in a negative way as it continuously provided a subsidy.

    “If it’s for a short term, [the corporate] will be fine, but such a long-term program on the matter will put concerns toward the business' sustainability."

    Moreover, Nila underlined that promotions and discounts using the subsidy from Go-Jek were temporary. “Take a look at other business models, there is no eternal promotions and discounts. This must be maintained.”

    Earlier, an economist at the University of Indonesia, Fithra Faisal, predicted that the number of online ojek users for short trips would drop after Transportation Ministry imposed the new rate through a Ministerial Decree No. 348/2019.

    “They’re facing a double hike in tariff from the previous flag-fall rate. Especially users in the zone II in Jabodetabek (Jakarta Greater Area),” said Fithra in Cikini, Central Jakarta, Monday, May 6.

    Based on the survey conducted by Research Institute of Socio-Economic Development (Rised), the flag fall tariff for the zone II in the field is now at Rp10,000 up to Rp12,500 for a minimum of four kilometers. The figure was higher than that of noted in the new policy because it was the net tariff for drivers.