Indonesian gig drivers protest demanding lower app fees

Thousands of drivers from ride-hailing and food delivery apps protested in Indonesia on Tuesday, demanding a 10-percent cap on commission fees.

Hundreds of drivers gathered in the streets of the capital Jakarta, driving their motorbikes and waving flags.

Thousands more in Indonesia's second-largest city of Surabaya drove to the offices of ride-hailing apps GoJek and Grab, before rallying in front of the governor's office, an AFP journalist saw.

"Many of our friends got into accidents on the road, died on the road because they have to chase their income," Raden Igun Wicaksono, chairman of the driver's union Garda Indonesia, told AFP.

"It's about lives, not about business calculation."

Drivers are also demanding the end of discounted fare programmes and calling on lawmakers to meet with the drivers' association and app companies.

Motorbike and scooter drivers who form the backbone of Indonesia's sprawling gig economy earn up to 150,000 rupiah ($10) a day, but costs including app commissions and fuel eat into their income.

Gojek -- which alongside Singapore's Grab is among Asia's most valuable start-ups -- said it was committed to "supporting the long-term welfare of our driver partners".

But lowering its 20-percent commission fee, which complied with regulations, was "not a viable solution", according to Ade Mulya, head of public policy for Gojek's parent company GoTo.

"Reducing the commission to 10 percent is not a viable solution, as the current 20 percent commission from customer trip fares is essential to fund initiatives that directly support the sustainability of the ecosystem and driver income," Ade said.

Tirza Munusamy, Grab Indonesia's head of public affairs, said the company's commission structure was "necessary" to maintain the quality of service.

"If this commission structure were to be significantly reduced, the impact would go beyond service quality -- it would threaten the sustainability of an ecosystem that supports millions of people," Tirza said, adding that Grab was open for dialogue to ensure policies remain relevant for drivers.

Source: AFP