Indonesia will cut the caps on the commissions that ride–hailing companies take from drivers for each trip to 8% from 20%, President Prabowo Subianto said on Friday in Jakarta.
Here are the details:
• Prabowo said he signed a presidential regulation which was the basis for the new maximum commission cap that ride–hailing firms could take from their driver partners.
• “The revenue share for drivers has been increased from 80% to a minimum of 92%,” he said during a speech.
• Prabowo did not say when the regulation would take effect.
• Aside from the lower commission cap, the regulation will also require ride–hailing firms to provide accident and health insurance, Prabowo said.
• “It’s just not right that you’re (drivers) the one sweating while they’re (the platforms) the ones making the money,” Prabowo added.
• In January, Reuters exclusively reported on the planned regulation that will threaten the profitability of ride–hailing platforms in their largest market in Southeast Asia.
• The rule will affect ride–hailing firms such as Indonesian tech firm GoTo and Singapore-based rival Grab.
Reuters
