Skip to main content

Indonesia Bans, Then Swiftly Unbans, Motorcycle Taxi On-Demand Services


A kerfuffle in Indonesia today illustrated the unpredictable nature of regulators and regulations when it comes to ride-sharing services in Southeast Asia, the region where smartphone ownership is rapidly growing among its collective population of 500 million plus.
Less than a week after Jakarta’s governor Uber, GrabTaxi and other ride-sharing services a set of requirements in order to (finally) operate legally, ending a year of uncertainty around their status, the Indonesian government today banned (and then, less than 12 hours later, unbanned) Go-Jek, a motorbike taxi on-demand service that claims 200,000 drivers in the city, and others in its space.
Ojek (motorbike taxi) services Go-Jek, an up-and-coming startup backed by Sequoia that also offers food and package delivery, Uber-rival GrabTaxi’s GrabBike service, female-focused Lady-Jek and Blue-Jek were among those banned by Indonesia’s Ministry of Transport, which held a press event late on Thursday.
“The requirements of public transportation are [that the vehicles] have at least three wheels, have legal standing and possess a public transportation business permit,” The Jakarta Post quoted Transportation Ministry Ignatitus Jonan as saying.
“Whatever the name, the operations similar to Go-Jek, Go-Box, GrabBike, GrabCar, Blue Jek, Lady Jek are all prohibited,” he added.
However, less than half a day later, it was all change. The ban was overturned following outcry on social media, and the intervention of — among others — Indonesian President Joko Widodo, who stated on Twitter that regulations should be supportive rather than restrictive.
The President’s communications team stressed via a statement to Digital News Asia that the industry has grown out of necessity
“We need to remember that ojek exists because the people need it. We need the transportation agency and ministry to support them and at the same time regulate them, to make sure that they follow the safety requirements needed,” its statement read.
Anyone who has ever set foot in Jakarta, a bustling city of more than 10 million people with jam-packed roads, can appreciate the convenience and speed of an ojek. Google recently revealed that Go-Jek was among the top ten most popular search terms in Indonesia this year, and the company is clearly gaining ground among the masses as the collective Facebook and Twitter response to the ban illustrated.
“The president overturned the decision within 12 hours, supporting us publicly,” Go-Jek CEO Nadiem Makarim told TechCrunch. “[The] people backlash on social media was historical, we were the top trending topic for the whole day. The minister of transport retracted the ban, and now we are 100 percent backed by the president to operate.”
GrabTaxi, which operates GrabBike in Jakarta — in addition to Thailand and Vietnam — also went on record which a statement that included the following:
We respect and will comply with local regulations. The ridesharing industry is still in its infancy and we will continue to work with the government and all industry stakeholders to expand the regulatory framework. We believe that it’s our shared objective to make the Indonesian public transportation more efficient, and to enable all Indonesians to commute safely.
There were a few sensational headlines (hello Business Insider!) but, those aside, most watchers won’t be hugely surprised to see a chaotic situation in Southeast Asia caused by different government organizations and regulators trending on each other toes.  In the end, though, Go-Jek has come out in a stronger position than it started. That’s much like the cycle for acceptance that Uber and GrabTaxi have entered in the region: going from being unwanted, to popular and then to banned and — as is beginning to happen in countries like Singapore, Indonesia and Philippines — embraced as a legal business. Go-Jek just jumped a lot of those hoops in 12 hours!

Comments

Popular posts from this blog

SoftBank Lands $236M From Alibaba And Foxconn To Bring Its Pepper Robot To The World

Remember Pepper,  the intelligent robot that SoftBank unveiled last year ? Pepper goes on sale in Japan this coming weekend, but in advance of that launch  SoftBank has revealed  that Alibaba and manufacturer Foxconn have invested $118 million each in its robotics division. That deal will give Alibaba and Foxconn 20 percent shares in SoftBank Robotics Holdings (known as SBRH), with SoftBank retaining a dominant 60 percent stake. “SoftBank, Alibaba and Foxconn will build a structure to bring Pepper and other robotics businesses to global markets, and cooperate with the aim of spreading and developing the robotics industry on a worldwide scale,” SoftBank said in its announcement. SoftBank isn’t short on money, of course — it is building up quite a portfolio of e-commerce investments across Asia — but its two partners bring know-how, strategy and global networks to the table. So, it looks like Pepper has eventual world domination plans. Or, at least, ...

Five budget-friendly open source storage servers

Storage is essential for the enterprise: Data must be stored. Data must be retrieved. Data must be shared. Data must be secured. At the same time, storage must not consume the entirety of your IT budget. Fortunately, you can find effective solutions in the world of open source. Outside of cost effectiveness, one of the biggest benefits of these solutions is the ability to modify them to perfectly fit your needs. You can make minor changes or even roll your own storage solution based on one of these tools. If you want enterprise support and a "solution in a can" that will meet just about any enterprise storage need, you should turn to Red Hat or SUSE. Both Linux-based companies offer some of the most powerful enterprise-ready tools on the market. But if you'd rather get your hands dirty and craft something of your own—something that won't demolish your budget—these five open source tools are a great place to start. 1: ownCloud ownCloud ( Figure ...

Apple Releases First Battery Case To Eat Third-Party Accessory Makers’ Lunch

In a surprise move, Apple just announced an external battery case for the iPhone 6s. Named the  iPhone 6s Smart Battery Case , the battery extends the battery life of your iPhone 6s by up to 25 hours. The new accessory is available in black and white for $99 starting today. Let’s start with the design. Apple is using silicone as the main material like on its other cases. The company doesn’t disclose the capacity of the battery except that you’re supposed to get 18 to 25 hours of extra battery. Like third-party battery cases, Apple uses a Lightning male port at the bottom to plug your iPhone. You can charge the case using a traditional Lightning cable — most third-party batteries rely on a microUSB cable. Apple’s accessory also works with the iPhone 6 and it looks like there isn’t a 6 Plus and 6s Plus version. The Smart Battery Case features an unfortunate hump at the back. Mophie’s  Juice Pack  design is a bit sleeker compared to Apple’s official accessory. Apple...

Apple to release new small phone before iPhone 7

Apple to release new small phone before iPhone 7 Apple is to create a smaller, cheap version of the iPhone, persistent to the 4 inch size of the iPhone 5. Apple is testing 5 different iPhone 7 models. It will sell next to Apple’s existing phones however mark the first time that Apple has ready a latest phone smaller than the one it locate on sale before. There will be the choice of 2 or three colours likely the  gold, space grey  and silver options that mainly Apple products now coming up. Other than inside there will be very much better components. The flagship improve will be the addition of the A9 chip that powers the iPhone 6S. There may also be a number of changes to the outside. The most able to be seen is apt to be the addition of the somewhat curved edges that are found on the iPhone 6 and 6S. careinfo.in Apple  dropped the iPhone 5C previous this year. A number of hoped that it would be replaced by a 6C, though reports at the time made clear that we...