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Friday, April 1, 2016

Indonesia tells Grab, Uber to partner with transport businesses to operate

Thousands of taxi drivers and other public transport stage a protest in March against transportation services online that are considered illegal. In their second protest, they again demanded the government to curb such online-based freight transportation, Uber Car and Grab Taxi.

Ride-hailing apps Grab and Uber must partner with a transport business and register their cars by the end of May if they want to continue to operate in Southeast Asia's largest economy, a minister said on Thursday.
"Uber, Grab are app companies. If they want (to operate), they have to partner with a transportation business entity, like a car rental company," Transportation Minister Ignasius Jonan told reporters.

Azwar/Pacific Press/LightRocket via Getty Images
Thousands of taxi drivers and other public transport stage a protest in March against transportation services online that are considered illegal. In their second protest, they again demanded the government to curb such online-based freight transportation, Uber Car and Grab Taxi.

The proliferation of cheap taxis using ride-hailing apps Grab and Uber in gridlocked Jakarta has made the traditional pick-up and drop-off taxi services unprofitable, threatening the business models of the country's top taxi firms.
Indonesian cabbies clashed with drivers working for online apps on Tuesday, pulling them off their bikes and assaulting them as thousands of drivers took to the streets of Jakarta calling for a ban on ride-hailing apps like Grab and Uber.

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