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, ...

LeafLink Raises $750K To Become Salesforce For The Cannabis Industry

LeafLink , an NY-based wholesale management platform for the cannabis industry, has closed a $750k seed round led by group of NY angel investors. The software platform is designed to support participants in a B2B supply chain, providing basic tools designed to save money for retailers and allow producers to get better pricing for their product. These tools will include a centralized location to view correspondence between buyers and suppliers, inventory and order tracking tools, and a portal to discover new products and services so users can source leads and close deals from within the platform. Founders Ryan Smith and Zach Silverman explained that they “believe cannabis regulation and distribution is moving toward mimicking the alcohol industry with regional distributors and nonsensical supply chain participants”. By focusing on creating a supply chain similar to the alcohol industry, the company hopes to eventually be the universally accepted way for buyer...

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...

Airbnb will open its Cuba listings to users outside the United States

Airbnb  will now let travelers from outside the U.S. to book properties in Cuba after receiving authorization from the U.S. government,  reports the Associated Press . Previously, only Americans were allowed to reserve the site’s  Cuban listings . They will open to international users on April 2. Airbnb launched its  Cuban operations in April 2014 , four months after the Obama administration revealed that it will begin to  restore diplomatic relations with the Communist country . The historic policy change means that  travel and trade sanctions will be lifted , which is expected to boost tourism to Cuba dramatically because Americans no longer need licenses to visit. In fact, President Obama is  currently on an official visit to Cuba , the first president since Calvin Coolidge to do so. According to the AP, Cuba is currently Airbnb’s fastest-growing market, with about 4,000 homes added since it opened listings. Other travel businesses...

Party Like It’s 2003 As PlayStation 2 Emulation Is Coming To PlayStation 4

If you’re into big pixels, Sony has a treat for you. The company has secretly been working on a fully functioning PlayStation 2 emulator for the PlayStation 4. It is taking advantage of this emulator for classic PS2 Star Wars games. But the company also confirmed to  Wired  that it is working on bringing more PS2 games to the PS4. You can buy a Star Wars Battlefront bundle that comes with a PlayStation 4, EA’s latest Star Wars game and a bunch of old games — Super Star Wars, Star Wars: Racer Revenge, Star Wars: Jedi Starfighter, and Star Wars: Bounty Hunter. Eurogamer  tried these games  and got a nice surprise. These games weren’t updated for the PlayStation 4. Instead, they run inside a PlayStation 2 emulator. You’ll find much of the PlayStation 2’s classic iconography starting with the start and select buttons, virtual memory cards and the good old PlayStation 2 logo when you boot these games. It also means that there will be a lot of upscaling and things...