Indonesia to put a cap on discounts offered by ride hailing giants

Indonesia to put a cap on discounts offered by ride hailing giants

A GrabBike motorcycle driver, left, and a Go-Jek motorcycle driver wait for orders in Jakarta, Indonesia, on Sunday, Aug. 13, 2017. Photographer: Dimas Ardian/Bloomberg

Indonesian transportation ministry is formulating a regulation to put a cap on discounts offered by app-based motorcycle taxis to minimise the ‘so-called predatory pricing’ in the market.

In the past years, Grab and GOJEK have engaged in a fierce battle for market share as they offer unrestricted discounts, creating price wars, to gain dominance in the region’s largest economy.

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