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Indonesia: SPAI Workers Union Condemns Online Motorcycle Taxi Business as a ‘Failed Business Model’

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Well.

This is certainly a turn of events – a complete 180, in fact.

With the rise of living costs and urban population inflation worldwide, certain motorcycle markets are larger than others – and while the Eastern Hemisphere might boast the biggest contribution to the two-wheeled industry, it’s the third-largest market in the world (after India and China) that’s quickly figuring out certain hyped-up ideas aren’t working as well as predicted.

'OJEK Online,' an online motorcycle business currently under scrutiny by Indonesia's Workers Union (SPAI). Media sourced from Kumparan.
‘OJEK Online,’ an online motorcycle business currently under scrutiny by Indonesia’s Workers Union (SPAI). Media sourced from Kumparan.

Take this Indonesian motorcycle taxi business that tried to go online, for example; according to En.Tempo, the Indonesian Transportation Workers Union (SPAI, for short) condemned ‘OJEK Online’ as a “failed business model,” stating that the model “failed to improve the welfare of OJEK online drivers.”

SPAI’s chairperson, a woman by the name of Lily Pujiati, stresses that the companies using this business model have a tendency to cheat the system, increasing deductions (the maximum deduction for transportation app firms) over the regulated 15% to 20%, with some taking as much as 40%.

Her solution to the problem?

'OJEK Online,' an online motorcycle business currently under scrutiny by Indonesia's Workers Union (SPAI). Media sourced from The Jakarta Post.
‘OJEK Online,’ an online motorcycle business currently under scrutiny by Indonesia’s Workers Union (SPAI). Media sourced from The Jakarta Post.

Monitoring online transportation companies that are taking those cuts – and the results ain’t gonna be pretty.

With “goods and food deliveries…still left to the market price mechanism and…determined unilaterally by the online motorcycle taxi companies,” we look forward to seeing how Indonesia’s SPAI handles the solution.

Check back here for updates, comment down below letting us know what you think, and as ever – stay safe on the twisties.

*Media sourced from The Jakarta Post, the Indonesia Expat, and Kumparan*​


The post Indonesia: SPAI Workers Union Condemns Online Motorcycle Taxi Business as a ‘Failed Business Model’ appeared first on webBikeWorld.

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