Maxim Proposes Online Ride-Hailing Service’s Tariff

Russian ride-hailing service company, Maxim, proposes changes to the online motorcycle taxi tariff. The proposed scheme is the minimum tariff adjusted to the regional minimum wage (UMR) of each province.

This is different from the current scheme which is divided into three zones. Maxim’s proposal, the most expensive minimum tariff is IDR 4,500 for 2 kilometers in DKI Jakarta and Riau Islands. While the cheapest minimum tariff is IDR 2,500 for the same distance in East Java, Central Java, East Nusa Tenggara, and Yogyakarta.

With this scheme, Maxim also makes a minimum income estimate for online motorcycle taxi drivers. The estimate is assuming, the driver gets 50 orders per day, working 25 days a month.

In line with the proposed regional minimum tariff, the greatest potential income is for drivers in DKI Jakarta and the Riau Islands at IDR 4.3 million per month. While the lowest is in East Java, Central Java, East Nusa Tenggara and Yogyakarta, which is IDR 2.1 million per month.

However, in terms of its ratio to the local UMR, the largest earning potential for online motorcycle taxi drivers in Yogyakarta is 123%. This is because the local UMR is IDR 1.7 million per month.

Maxim proposes this scheme because in reality there are differences in purchasing power in each region. Although, there is a similar need for transportation. “(This) should be considered in the decision regarding tariffs,” said Maxim Development Director in Indonesia, Dmitry Radzun, as quoted from the company’s press release on Thursday (13/2).

The Difference in Tariffs is Based on Differences in Consumer Demand in Each Region

On the other hand, the driver’s income and expenses must also be considered. “How can the driver be able to benefit and be able to cover the basic expenses,” he said.

Dmitry added, in most cases, consumers refused travel fares that were too expensive, thus making the number of orders and the driver’s income decrease. Conversely, with affordable travel costs, the driver benefits from the number of orders received.

In line with Maxim, Chair of the Presidium of the Two-Wheeled Joint Action (Guard) Igun Wicaksono requested that the application of online motorcycle taxi rates be set per province. Because online motorcycle taxi service requests are different in each region.

Likewise with the increased cost of online motorcycle taxi service components. “Geographical factors and willingness to pay (ability to pay) people in each region are different. So it should be adjusted to those two factors,” he said some time ago (27/1).

Tariffs in the Regions are Expected to Remain Stable, Jabodetabek will Rise

During this time, the online ride-hailing service’s tariff scheme refers to the Decree of the Minister of Transportation Number KM 348 in 2019. The tariff is divided into three zones. The upper and lower limits of tariffs in this region range from IDR 1,850 to IDR 2,300 per kilometer.

And then zone two’s tariff of IDR 2,000-Rp 2,500 per kilometer. Zone three tariffs range from IDR 2,100 to IDR 2,600 per kilometer. Currently, the Ministry of Transportation is evaluating online motorcycle taxi rates.

So far, the available options are fixed or rising rates. “We will conduct a survey of the level of ability and willingness to pay the community. YLKI (Indonesian Consumers Foundation) wants to not rise, do not burden consumers,” said Director of the Road Force Ministry of Transportation Ahmad Yani, Tuesday (11/2) then.

The options that have been pursed from the evaluation of online motorcycle taxi rates are fixed and there is an increase. The Ministry of Transportation estimates that tariffs will remain in the regions because it is feared that demand from consumers will decrease, while the increase option is in Jabodetabek because of the high demand.