"We cannot overlook the fact that online taxi services are cheaper than those offered by conventional taxis. Hence, regular taxi operators may not stay silent. They must seek strategies to offer simple, cheap, and good-quality services," Barata state
Jakarta (ANTARA News) - The Transportation Ministry has called on conventional taxi operators to follow the marketing strategies adopted by their app-based counterparts to attract passengers by providing simple, cheap, and quality services.

Benefits to the public from cheap fares offered by app-based taxi services cannot be overlooked, Public Communication Head of the Transportation Ministry J.A. Barata remarked. .

"We cannot overlook the fact that online taxi services are cheaper than those offered by conventional taxis. Hence, regular taxi operators may not stay silent. They must seek strategies to offer simple, cheap, and good-quality services," Barata stated in Jakarta on Saturday.

He pointed out that there are several cost aspects, which are not accounted for in app-based taxi services, notably insurance, vehicle maintenance, and operational costs.

In the meantime, conventional taxis have to bear vehicle expenses, such as depreciation, parking, vehicle servicing, and passengers insurance costs.

He pointed out that regular taxi services should accept the presence of the online taxi service, as the use of technological advancements could not be avoided.

The Transportation Ministry will also regulate the tariff of online taxi services in the revision of Transportation Ministers Regulation Number 32 of 2016 on Public Transportation on Non-Fixed Routes. This regulation will come into effect on Apr 1.

The regulation contains 11 points of the new provisions concerning online taxi services, but app-based providers are still objecting to three of the 11 points: quota, tariff limits, and the obligation of the online service to have a corporate identity.

He noted that the new regulations are aimed at minimizing competition between conventional and online taxi services.

"The process of putting in order taxi transportation services is not yet completed. Most importantly, once the mass rapid transit and light rail transit projects are completed, they will also reduce the demand for app-based taxi services," he added.(*)

Editor: Heru Purwanto
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