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

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

- Indonesian ride-hailing and food delivery firm GoTo GOTO.JK and Singapore-based Grab GRAB.O will lower per-trip commissions taken from their two-wheeled drivers in Indonesia to 8% from 20% previously beginning on July 1, the companies said on Tuesday.

Here are some key details:

  • Indonesian President Prabowo Subianto first announced an 8% 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% 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 Southeast 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."


(Reporting by Ananda Teresia; Editing by Joe Bavier)

((Ananda.Teresia@thomsonreuters.com;))

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