Indonesian ride-hailing and food delivery firm GoTo and Singapore-based Grab will lower per-trip commissions taken from their two-wheeled drivers in Indonesia from 20% to 8% starting next month.
"We support the efforts to continue increasing the prosperity of the drivers," Catherine Hindra Sutjahyo, GoTo's vice president director, said at a press conference.
She and Grab Indonesia CEO Neneng Goenadi said their companies will begin applying the 8% commission rate on July 1.
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GrabFood drivers wait for order in Jakarta, Indonesia on Dec. 30, 2021. Photo by AFP |
Indonesian President Prabowo Subianto first announced an 8% cap on commissions during a speech on May 1 but gave no timeline for implementation of the measure.
In January, Reuters exclusively reported on the planned regulation that could threaten the profitability of ride-hailing platforms in their largest market in Southeast Asia.
Deputy parliament speaker Cucun Ahmad Syamsurijal said the reduced commissions were proof that Prabowo's administration "is genuinely committed to standing by all ride-hailing drivers."
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