Grab and GoTo Yield to Pressure: Slash Driver Commissions in Indonesia

Indonesia’s GoTo, a ride-hailing and food delivery company, alongside Singapore-based Grab, announced they will reduce the per-trip commissions for their two-wheeled driver partners in Indonesia. Beginning July 1, the commission rate will be slashed from 20% to 8%.

Implementation of Reduced Commissions

Indonesia’s President, Prabowo Subianto, first brought up the idea of an 8% cap on commissions in his speech on May 1. However, he did not provide details regarding when this initiative would be implemented.

GoTo’s VP Director, Catherine Hindra Sutjahyo, expressed the company’s support for the initiative at a press conference. “We support the efforts to continue increasing the prosperity of the drivers,” she stated.

Neneng Goenadi, Grab Indonesia’s CEO, echoed Sutjahyo’s sentiments. Both leaders confirmed that their respective companies will start applying the new 8% commission rate from July 1.

Impact on Ride-Hailing Platforms

This development was first reported in January, with concerns raised about its potential effect on the profitability of ride-hailing platforms, particularly in Southeast Asia, which serves as their largest market.

Cucun Ahmad Syamsurijal, the Deputy Parliament Speaker, lauded the reduced commissions as a testament to President Prabowo’s administration’s commitment to supporting all ride-hailing drivers in the country.

Questions & Answers

**What is the new commission rate for two-wheeled drivers for GoTo and Grab in Indonesia?**
The new commission rate is 8%, reduced from the previous rate of 20%.

**When will the new commission rate take effect?**
The new commission rate will be implemented starting July 1.

**What potential impact could this reduction have on ride-hailing platforms?**
The reduction could potentially affect the profitability of ride-hailing platforms, particularly in Southeast Asia, their largest market.