Ride-Hailing Apps Illegal After Violent Protest By Indonesia Taxi Drivers

Ride-Hailing Apps Illegal After Violent Protest By Indonesia Taxi Drivers

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Reuters

In an unfortunate turn of events, ride-hailing apps such as Uber and GrabCar have been declared illegal by the Indonesian Transportation Ministry after a protest by taxi bus and bajaj (3-wheeled scooter) drivers turned violent in the capital, Jakarta. The protest caused traffic chaos in the already crowded city famous for its traffic jams.

About 10,000 members of the Indonesian Land Transportation Drivers Association had planned to march into government buildings to protest against the app-based transportation businesses and to get the government to ban them. Many of the protesters wore the blue uniforms of PT Blue Bird, Indonesia’s largest taxi service and blocked major roads. The protest turned violent as protesting drivers assaulted non-protesting taxi drivers who continued operating and vandalized their taxis. Other cars and motorbikes suspected to be operating under the ride-hailing companies were also attacked with stick and rocks.

Ride-hailing apps like Uber, GrabCar and Go-Jek (for bikes) have gained popularity in congested Jakarta due to the ease of getting a ride as well as cheaper costs. This of course, has affected the income of conventional taxi drivers. Prior to this, the Indonesian government has allowed the ride-hailing businesses to operate in an effort to push the digital economy and meet demand for public transport. Indonesia doesn’t yet have a mass rapid transit system although Jakarta is building one which is expected to be operational in late-2018.

Following the government’s ban, the affected companies must become a car-rental business and get licenses as public transportation operators, and the drivers pass driving tests and be covered by auto insurance in order to resume operations. If these services want to be classified as an alternative taxi service, the drivers have to use a fare meter in accordance with the government-regulated fare.

This isn’t the first time a protest against the likes of Uber has happened but this is the one of the most violent and causing a major gridlock didn’t endear the taxi drivers’ cause to the public.

 

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