E-hailing App Takes Advantage of Two-Wheel Vehicles in Indonesia

E-hailing App Takes Advantage of Two-Wheel Vehicles in Indonesia
Photo Credit:達志影像

What you need to know

Grab has achieved significant growth over the first half of 2016 thanks to the loose regulations on two-wheel transportation in Indonesia.

Grab, an e-hailing transportation service app based in Singapore, announced on July 14 it had achieved 300% growth in the first half of 2016.

The growth has reportedly benefited from loose Indonesian regulations on two-wheel transportation, mainly motorcycles, which has helped the company to keep developing at a fast pace.

Back in March, protests initiated by taxi, bus, and rickshaw drivers against app-based transportation services like Uber and Grab prompted the Indonesian government to establish new regulations to protect non-app-based transportation providers.

While the revised regulations stipulate that app-based companies cannot directly sign contracts with private car owners and can only set prices according to government standards, they do not impose restrictions on two-wheel vehicles.

This has seen GrabBike, which started May, 2015, along with UberMoto, a two-wheel transportation service under Uber, and GoJek, a local mobile app that also provides two-wheel vehicles, focus on two-wheel vehicle services.

Indonesia, which suffers from a notoriously poor public transportation system, is currently the largest market for Grab with more than 320,000 people registered as Grab drivers.

Grab is targeting Greater Jakarta, with a population of 30 million people and heavily congested roads, as its most promising market, and the company is expanding its services to eight other major cities in Indonesia.

First Editor: Olivia Yang
Second Editor: Edward White