GoTo, Grab to cut driver commissions to 8% in Indonesia

[JAKARTA] 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 to 8 per cent from 20 per cent previously beginning on July 1, the companies said on Tuesday (Jun 23).

Indonesian President Prabowo Subianto first announced an 8 per cent cap on commissions during a speech on May 1 but gave no timeline for implementation of the measure.

“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 per cent commission rate on July 1.

In January, Reuters exclusively reported on the planned regulation that could threaten the profitability of ride-hailing platforms in their largest market in South-east 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.” REUTERS