TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi views that special promo fares offered by online taxi companies in Indonesia will only end up killing the business as a whole. He further implied that it would spark a monopoly in the online ride-hailing business sector.
“A winner will emerge to monopolize once they kill each other’s businesses, only then the fares would be stabilized,” said Budi today, July 5.
Read: Ministry Wants Online Cabs to Follow Tariff Rules
Discounted tariff does profit the consumers in the short run, but it can be dangerous in the long run since online taxi service providers compete by killing the business of their rivals.
Therefore, the Ministry regulates this business sector in order to create a fair competition among the operators by issuing rational and proper taxi tariff.
Budi revealed that the discussion in limiting the lower and upper rates of online taxi companies has run for almost nine months. He is positive that the regulation will be able to protect consumers in the long run.
The Transportation Minister revealed that the new regulated fares would be 15 percent cheaper for consumers and that it also takes the livelihood of the drivers into consideration.
DIKO OKTARA