Indonesian Government to regulate the rates drives receive for services in sharing economy companies

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Regulators are preparing to fix the rates drivers for ride-hailing services receive, after drivers demands for more oversight and higher rates, as reported by Reuters. As part of an attempt to expand sharing economy services in Southeast Asia, two main companies in the sector, Grab and Go-Jek, have been practiced price wars in Indonesia by reducing fares. Since last year, motorcycle taxi drivers working for both ride-hailing companies have held protest rallies calling for improving their working conditions. The Ministry of transportation aims at implementing minimum and maximum tariffs and at imposing limits on promotional price reduction. The companies claim that such measures can create hurdles for their expansion. The working conditions and payment of ride-hailing drivers and riders have drawn attention of regulators worldwide.

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