The problem of application based transportation in indonesia

OVERVIEW OF APPLICATION-BASED TRANSPORTATION IN INDONESIA

Putika Ashfar Khoiri

[email protected]

July 31st, 2017

PUBLIC TRANSPORTATION MODES IN INDONESIA

Vehicles which are allowed to be used as inland public transportation, as follows:

Motorcycle Bus

Passenger car (angkot/kopaja) rickshaw

bajaj

wagon


In some regions there are some special public transportation modes

Trans Jogja

• Trans Jogja is a bus rapid transit (BRT) system operates in Yogyakarta as shelters, with 8 different routes

• Ticket costs on Trans Jogja are trip based. Passengers pay for one trip and can go any distance along the bus route. Changing buses is free as long as it is done within one hour from the start of the first trip.



TransJakarta

• TransJakarta is a Bus Rapid Transit (BRT) system in Jakarta, Indonesia. It was the first BRT system in Southern and Southeast Asia. TransJakarta system began operations on 2004.

• Passengers can purchase a single-journey paper ticket at the ticket booth in the shelter.

• The cost of a TransJakarta ticket since its opening has been a flat rate. Passengers who wish to change direction or transit to other corridors do not need to pay again, provided they do not exit the shelter



Commuterline / KRL (Kereta Rel Listrik, Electric Multiple Unit)

• KA Commuter Jabodetabek is operated by Indonesian national railway company

• Passengers may purchase ticket for single or multiple journeys.

• Fare is charged by distance traveled(progressive fare),

USER REASONS

Reason using public transport

Reason using private transport

*(Munawar, 2007)

The reason of non public transport users not to use public transport

For public transport users, most of them need to change to other bus before they reach their destination

DEVELOPMENT OF APP-BASED TRANSPORTATION

Biggest private companies launches Android and iOS app with transportation in Indonesia

• October 2010: GO-JEK started with a call centre and fleet of 20 riders

• August 2011 : San Francisco-based Uber entered Indonesia

• January 2012: Malaysian uber taxi entered

How do they works

Request

Get a driver

Pay and go

Tap each ride option to see wait time, size, and price. Then enter your pickup location and tap request, your driver will arrive in minutes.

Find the nearest available driver. You’ll see your driver’s contact information and vehicle details in the app, so you know you’re getting in the right vehicle

Hop out and rate your driver when you reach your destination.


Advantages

Easiest way around

Anywhere, anytime

One tap and a vehicle comes directly to you. Hop in and your driver knows exactly where to go

Wherever you’re headed, no reservations required.

Additional services Gojek came up additional services; Go-food, Go-send, Go-mart, Go-massage, GO clean, Go glam

CHEAPER PRICE

How can app based transport in Indonesia like Gojek, Grab, and Uber offer much cheaper price than it should be?


Advantages

CHEAPER PRICE

Registration fee, member fee, any fee from the member

An acquaintance who signed up for the driver said that she had to pay a certain amount as the registration fee. Goods like jacket, smartphone and others which can be paid through down payment.

10-20 percent of the transport feeBoth Go-Jek and Grab are taking some percentage from the order. Go-Jek takes 20%

while Grab takes 10% as can be seen here. I do not know about Uber.

Market oriented

They concern more about market. At first, they may seem cheaper. However, Go-Jekand Grab base fares are already different compared to the previous year. The fare is even quite competitive with the traditional ojek.

Getting more and more usersJust like Facebook and Quora, money is not their first purpose. They need the market

first. They concern more about getting user than financial profit. The more users they get, the more investors may be attracted.

THE PROBLEMS

New competitors

The competition from these new technologies is disrupting the market for traditional players. Given the relatively low price and ease of access for Uber and Gojek, these apps are entering a head-to-head war with established operators.

Disruptive innovations

The collapse of “sustaining” companies: those that are not innovating using new technologies, but only improving their existing services.

Disruptive innovation allows a new population of consumers to access products or services that were historically only accessible to rich consumers.

Regulations

Flexible regulations should be there to cope with this trend. Indonesia’s regulations are currently too rigid to be able to adapt to the entrance of disruptive technologies.

THE PROBLEMS

Lisence Plate

• Automobile such as car (Every type of car include to trucks) and motorcycle are legally bind to follow these instructions.

• Not only for the tax purposes but also the safety of the passengers or the driver.

yellow colored license plate for public transportation or commercial use

Private vehicle are identified by black colored

• Every car needs to be registered by their company and that company along with the data are registered in authority.

• The vehicle should be rejuvenated in every five years, to make sure that the vehicle performance will not be a danger to the safety of the passengers

THE PROBLEMS

Who can guarantee the safety then?

Which regulations do they follow to make sure the safety and comfort of the passengers? and who's forcing the regulations?

The private-owned vehicle are not being inspected regularly for the machine and safety conditions

Will they held responsible for it? for letting a broken vehicle being used for public transportation that will harm the passengers? That's goes the same as criminal act that happen to the passenger inside black coloured license plate marketed by Uber or Grab

Who will responsible for it? that's the only question for legal issues.

Engineering

The problem of application based transportation in indonesia