Ride-Hailing Companies Must Comply to Regulation, Expert Says

TEMPO.CO, Jakarta - Online ride-hailing companies are pushed to comply with the newly revised Transportation Minister Regulation No. 32 of 2016.

Djoko Setijowarno, a transportation expert from Universitas Katolik Soegijapranata, stated that the government and online ride-hailing companies should take the Kosti Taxi as an example. Kosti Taxi is a public transportation service managed by drivers cooperative. "The State is required to protect existing businesses and the [customers]," Djoko said on Sunday, March 19, 2017.

According to Djoko, the requests coming from online ride-hailing companies that demand a special slot during a vehicle test is somewhat exaggerated. Every vehicle participating in the annual vehicle examination (KIR) must queue like normal vehicles.

"Don't let KIR be considered as a source for regional income. KIR is to test the roadworthiness of a vehicle, whether if it's safe to carry passengers," Djoko said.

In addition, Djoko explains that applying a quota system is important to prevent oversupply ride-hailing vehicles. Allowing an unlimited number of ride-hailing vehicles to operate, according to Djoko, will resulted in decreasing service quality and unfair business competition for conventional public transportation modes.

"Online [ride-hailing companies] want as many vehicles as possible to participate in the KIR, but they don't think about the long-term effect," Djoko said.

BISNIS.COM