GoTo, Grab to cut driver commissions to 8% in Indonesia
A passenger sits next to Grab corner sign as he waits for a Grab bike at Sudirman train station in Jakarta, Indonesia on March 26, 2018.
PHOTO: Reuters
JAKARTA — Indonesian ride-hailing and food delivery firm GoTo and Singapore-based Grab will lower per-trip commissions taken from their two-wheeled drivers in Indonesia to 8 per cent from 20 per cent previously beginning on July 1, the companies said on Tuesday (June 23).
Here are some key details:
Indonesian President Prabowo Subianto first announced an eight per cent cap on commissions during a speech on May 1 but gave no timeline for implementation of the measure.
"We support the efforts to continue increasing the prosperity of the drivers," Catherine Hindra Sutjahyo, GoTo's vice president director, said at a press conference.
She and Grab Indonesia CEO Neneng Goenadi said their companies will begin applying the 8 per cent commission rate on July 1.
In January, Reuters exclusively reported on the planned regulation that could threaten the profitability of ride-hailing platforms in their largest market in Southeast Asia.
Deputy parliament speaker Cucun Ahmad Syamsurijal said the reduced commissions were proof that Prabowo's administration "is genuinely committed to standing by all ride-hailing drivers".
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