JAKARTA—Indonesian authorities Friday laid out new rules for Uber Technologies Inc. and other ride-hailing apps which require them to provide cars from existing transport providers instead of freelance drivers, a move that could hinder the growth of their business here.
The new regulations follow large protests by thousands of taxi drivers in Jakarta last month, which prompted the government to mandate ride-hailing companies like Uber and GrabTaxi Holdings Pte. Ltd., or Grab, to operate in cooperation with registered rental-car companies or taxi services, among other requirements.
Uber has already formed a partnership with a car-rental cooperative. Drivers of GrabCar, the car-hailing service of GrabTaxi, formed a cooperative last month.
Indonesia's car-rental cooperatives will also be allowed to determine the fares for journeys, which will range between the upper and lower limits previously set by the government.
Uber and Grab "can't just do whatever they want here," said Pudji Hartanto Iskandar, general director of land transportation at the Transportation Ministry.
The new requirements add to the growing regulatory burden facing the companies in Indonesia. Uber and Grab, like other tech companies, view the world's fourth-most populous country as a potentially rich source of revenue, but a backlash from traditional taxi operators here has prompted authorities to tighten the rules for the new, Web-based businesses.
Ridzki Kramadibrata, managing director for Grab Indonesia, said in a statement that parts of the new regulation would be a concern for its drivers, but hopes that the government will "also listen and consider the aspirations of our driver partners" and "look for the solution together."
Uber didn't immediately respond to a request for comment, but the company has said in the past that it understands the requirements laid out by regulators and will cooperate.
Source: Indonesia Requires Uber to Use Cars From Existing Transport Providers
No comments:
Post a Comment