Drivers for ride-hailing firms in Indonesia are demanding higher shares for every trip and special employment status to increase their bargaining power over fees. With the current share at 80 percent, drivers feel they are not making enough money, with some earning below Jakarta’s minimum wage of 5 million rupiah. These grievances prompted the National Online Taxi Coalition to organize a protest and call for platforms like GoTo and Grab to pay more attention to their needs.
One driver, known only as Wandi, shared that he works 10 hours a day but often makes less than 150,000 rupiah. This is well below the minimum wage, highlighting the financial struggles faced by many drivers in the industry. The coalition is hoping that by mobilizing and advocating for change, they can push ride-hailing companies to listen to their concerns and improve the terms of their employment.
GoTo and Grab are major players in the ride-hailing industry in Southeast Asia, offering not only transportation services but also food delivery and other options. With a combined market capitalization of approximately $18 billion, these companies wield significant influence and control over the livelihoods of their drivers. However, they do not currently have legal obligations to provide minimum wages, social security insurance, or limit working hours for their workers.
According to Nabiyla Risfa Izzati, a labor law lecturer at the University of Gadjah Mada, the government should step in to regulate these companies and ensure that drivers are treated fairly. This could involve setting minimum fees or creating guidelines for wages across different industries, including ride-hailing and food delivery. By having clear regulations in place, drivers would have more protection and a stronger position when negotiating with platforms.
The Indonesian manpower ministry has not yet responded to the drivers’ demands, while the transport ministry has stated that it does not regulate fees for ride-hailing companies. Instead, they urge platforms to take into account the concerns of their drivers and work towards finding solutions that benefit both parties. Drivers are hopeful that their protests and advocacy efforts will lead to meaningful change and improved conditions for those working in the ride-hailing industry.
