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  5. Volume 29, Issue 3 (2019)
  6. Online Transportation Price War: Indones ...

Regional Formation and Development Studies

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Online Transportation Price War: Indonesian Style
Volume 29, Issue 3 (2019), pp. 122–130
Sakti Hendra Pramudya  

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https://doi.org/10.15181/rfds.v29i3.2000
Pub. online: 4 August 2022      Type: Article      Open accessOpen Access

Published
4 August 2022

Abstract

Thanks to the brilliant innovation of the expanding online transportation companies, the Indonesian people are able to obtain an affordable means of transportation. This three major ride-sharing companies (Go-Jek, Grab, and Uber) provide services which not only limited to transportation service but also providing services for food delivery, courier service, and even shopping assistance by utilizing gigantic armada of motorbikes and cars which owned by their ‘driver partners’. These companies are competing to gain market share by implementing the same strategy which is offering the lowest price. This paper would discuss the Indonesian online transportation price war by using price comparison analysis between three companies. The analysis revealed that Uber was the winner of the price war, however, their ‘lowest price strategy’ would lead to their downfall not only in Indonesia but in all of South East Asia.

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Keywords
online transportation companies price war Indonesia

JEL CODES
D40 O18 O33

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