Indonesia Slashes Ride-Hailing Commissions: A Win for Drivers
Indonesia announces a cut in ride-hailing commission fees from 20% to 8%, boosting driver earnings. A new regulation mandates increased driver revenue shares to 92% and requires insurance coverage for drivers. The rule significantly impacts major firms like GoTo and Grab in Southeast Asia's largest market.
In a groundbreaking move, Indonesia has announced a reduction in ride-hailing commission fees from 20% to 8%, significantly benefiting drivers. President Prabowo Subianto revealed the change in Jakarta, highlighting a new presidential regulation that aims to enhance driver earnings.
The regulation mandates that drivers receive a minimum 92% of the revenue share. This shift ensures that those on the road see a fairer distribution of the profits and also obliges ride-hailing firms to offer accident and health insurance to their drivers.
This rule is poised to challenge the current profit models of major players like Indonesian tech giant GoTo and Singapore's Grab, highlighting a shift in favor of drivers in Southeast Asia's largest ride-hailing market.
(With inputs from agencies.)
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- Indonesia
- ride-hailing
- commission
- Prabowo
- regulation
- GoTo
- Grab
- drivers
- profitability
- insurance
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