Abstract
The presence of application-based taxis such as Grabcar and Gocar is a challenge for conventional taxis. Its existence can be reduced to conventional taxi company turnover. On March 22, 2016 thousands of conventional taxi drivers held a demonstration against the existence of online taxis, because online taxis were declared in violation of the Traffic Law and consequently the streets in Jakarta were chaotic. The existence of online taxis cannot be avoided any more, due to technological developments. Online taxis provide benefits and convenience for passengers in ordering and the rates are cheaper than conventional taxi rates. Anyone who has a cellphone and downloads the application, can order the online taxi and pick him up at the place where the passenger booked it. Therefore, the Government through the Ministry of Transportation issued Ministerial Regulation No. 32/2016 which recognizes the existence of online taxis in Indonesia and this Ministerial Regulation is revised through Ministerial Regulation No. 26/2017 and revised again to become Ministerial Regulation No. 108/2017.
Highlights
GrabCar entered in the mids of 2014,1 Uber in August 20142 and Gocar in 2016 into the Jakarta market with growing usage of smartphones
The reason was because online taxi and Gojek did not meet the requirements of public transportation as regulated in Law No 22 of 2009 concerning Road Traffic and Transportation and Government Regulation No 74 of 2014 concerning Road Transportation
Online taxi business is based on internet platform or relies on internet
Summary
GrabCar entered in the mids of 2014,1 Uber in August 20142 and Gocar in 2016 into the Jakarta market (further called online taxi) with growing usage of smartphones. Eventhough the government has already issued a regulation for online taxi, in some cities the driver of public transportation striked against the online taxi, for example in Tangerang city, Bogor, Bandung, Malang, Medan and Makassar. The driver of public transportation asked the local government to prohibit online taxi and online ojek in Tangerang, in Bandung, during a massive strike of public minivan drivers, an angry mob attacked a vehicle it suspected of being a taxi used by the ride-hailing application Uber and in Malang public minivan drivers asked the local government to stop online taxi, because their income day by day decreased. Once the Government of Republic of Indonesia accepted online taxi as a public transportation, the government must regulate in details the duty of application provider and taxi driver and or car provider including the price.
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