Blue Bird and GO-JEK to establish a partnership

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Transportation Minister Ignasius Jonan and Sigit Priawan Djokosoetono, Director of PT Blue Bird Tbk - Photo by Blue Bird

JAKARTA (TheInsiderStories) – PT Blue Bird Tbk (IDX: BIRD), a transportation company with multi-channel access to its service, and GO-JEK, on-demand application, plan to form a strategic partnership to elevate the service quality to all customers throughout the nation, said both companies in a statement.

As market leaders in their respective industries, Blue Bird and GO-JEK aim to create transformational innovations to their combined customer base. Both parties believe that each of their strengths are highly complementary and can further solidify their market leadership.

Moreover, Blue Bird and GO-JEK’s partnership will stretch across technology, payments, and promotions. All of the initiatives of the partnership are focused on the enhancement of overall transportation experience through a powerful and convenient mobile solution to customers nationwide.

In the near future, both parties will announce more detailed information regarding the partnership. We hope this collaboration will strengthen both brand positioning and be the pride of Indonesia.

Transportation Ministry has officially issued regulation No. 32 of 2016, which provides legal basis for the operations of application-based transportation since the ride-sharing application based transportation have not been covered by the existing transportation regulations.

The regulation will become effective from September 2016.

The ruling covers all non-fixed route public transportations such as taxis, rentals, charter, special purposes and so on. The regulation basically allows mobile application based transportation on condition that they comply with certain requirements.

It said an application could be done by the transportation operator or in cooperation with an application provider, which has legal entity in Indonesia. Payment system can be done through application as long as it complies with the regulations with regard to electronic transactions.

In the event of a public transportation company such as taxis cooperate with application provider, the application provider may not act as transportation operator, therefore the application provider may not set the tariff, recruit drivers and determine the income of drivers.

As for application providers such as Uber and Grab are obliged, the regulation mandate them to provide access for the authorities in order to monitor their service, data of companies that cooperate with the application provider, data on all vehicles and drivers that use its application and its own address.

In addition, the regulation requires the application provider to set up legal entity in Indonesia, either in the form of limited company or cooperatives. The application provider is required to obtain permit to conduct non-fixed route transportation business with requirements as follows: own at least five vehicles on behalf of the company and pass regular tests, owns car pool and workshop and its drivers must have drivers licenses.

In terms of tariff, the ministry ensures Uber and GrabCar rates not need government approval. It was at once corrected the relevant government statement cab “online” last week. By opting out directly the government thereof, Uber and GrabCar rates can still be cheaper than a taxi fare.

The post Blue Bird and GO-JEK to establish a partnership appeared first on The Insider Stories.

Source: The Insiderstories
Blue Bird and GO-JEK to establish a partnership

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