Market Chatter: GoTo Gojek Shows Support for New Ride Commission Regulation, Refines Business Strategy
GoTo Gojek Tokopedia (IDX:GOTO) is fully on board with the government's new rules increasing the revenue share of driver partners at ride-hailing firms to 92% and will make changes to its business model, The Jakarta Globe reported Tuesday.The firm emphasized its commitment to the welfare of its driver partners despite the regulation slashing the company's revenue from motorcycle ride-hailing services, GoTo's CEO Hans Patuwo said at a press conference.Under the new regulation, firms like GoTo will be mandated to receive a maximum 8% share from total ride fares.To better align with the new rules and keep business operations functioning smoothly, the firm's ride-hailing unit Gojek will terminate its GoRide Hemat subscription program, the news outlet reported.An internal review found that the program needed better balance to boost sustainability alongside driver welfare, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
