Indonesia just banned a $100 million Uber-like startup, and it is suddenly worth nothing
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Go-Jek, the $100 million Indonesian start-up which provides an Uber like service with motorbikes has just been made illegal.
Indonesian media is reporting that the Ministry of Transportation has asked local police to take action against the operators of internet based transport services as well as prohibit drivers of the service due to their effect on other forms of public transport.
The government is claiming that their reasoning behind the bans of the services are due to the motorbikes not meeting the requirements needed for a public transport vehicle.
Go-Jek currently has around 20,000 drivers in Indonesia across major cities such as Jakarta, Bandung and Bali, with many driving as their sole source of income.
Just yesterday Google announced that Go-Jek was the most searched term in Indonesia in 2015.
Uber and other local app based transport services such as Grab Taxi have also been banned in Indonesia as part of the ruling.
Questions & Answers
Q.What reason has the Indonesian government given for banning services like Go-Jek?
What reason has the Indonesian government given for banning services like Go-Jek?
The government claims the motorbikes used by these services do not meet the necessary requirements for public transport vehicles. This is their stated reasoning behind the ban on internet-based transport services.
Q.Which other app-based transport services are affected by the new ruling?
Which other app-based transport services are affected by the new ruling?
Uber and another local app-based transport service called Grab Taxi have also been banned in Indonesia. The ruling appears to apply to all internet-based transport services, not just Go-Jek.
Q.How many drivers does Go-Jek currently employ in Indonesia?
How many drivers does Go-Jek currently employ in Indonesia?
Go-Jek presently has approximately 20,000 drivers working across major Indonesian cities including Jakarta, Bandung, and Bali. For many of these individuals, driving for Go-Jek is their only source of income.
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