Increased Motorcycle Taxi Fares Could Upset People and Drivers

Jakarta, A plans for the increasing amount of the online-based motorcycle taxis could reduce needs for ride-hailing services by beyond two-thirds, potentially paring drivers earnings and prompting a lot of people using private vehicles, exacerbating traffic issues, recent research showed.

The planned fare increase could lower consumer needs by up to 71 %, according to a survey by the Institute for Socio-Economic Development Research, depending on interviews with 2,001 respondents in 10 provinces.

The govt has been drafting an idea to impose at least the rate of Rp 3,100 ( 22 US cents ) per kilometre to meet needs by the country’s more than 2 million online-based motorcycle taxi drivers.

Ride-hailing service Web-based platforms such as Go-Jek Indonesia and Grab have been worried to increase their fares – which start from as little as Rp 1,200 per kilometre, depending on demand and the time of day – because it could reduce customers from using their facilities and potentially make them less competitive.

Rumayya Batubara, the mind of Rised’s research team, said the study validated this issue. The evaluate found that 46 per cent of respondents accept the current fare is suitable, 28 per cent consider it too expensive when the remainder said it was cheap.

Rised expected that the government-proposed at least fare would increase the cost users spend on travelling by an average of Rp 7,920 a day. Alternatively, 48 per cent of respondents said they were only willing to pay an additional charge of less than Rp 5,000 a day when 23 per cent said they did not want to get any additional costs. Only 29 per cent of respondents were ready to accept an increase of between Rp 5 000 and Rp 30,000 in the price of their everyday commutes.

Zumrotin K. Susilo, a former chairwoman of the Indonesian Consumers Foundation ( YLKI ), said besides comfort, minimum fares were among the key motives consumers use online-based motorcycle ride-hailing service. Referring to the Rised study, she said near three-quarters of respondents have decreased their private vehicle usage to between once and 10 times weekly, while about 9 per cent have totally stopped using their cars.

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