Go-Jek lowers prices to spur demand, drivers protest. Again.

Disgruntled drivers of the ride-hailing startup speak with media in Jakarta today Credit: @dnanuy.

Just days after scoring a US$550 million investment and reaching the prestigious unicorn status at a US$1.3 billion valuation, Indonesia’s Go-Jek is being criticized by its own motorbike drivers.

Anger ignited when Go-Jek released a new version of its app for the drivers in its network. The update included changes to the compensation scheme. Some drivers feel it disadvantages them and lowers their potential income.

Go-Jek drivers and their supporters across Indonesia took to social media over the weekend to lament the changes and call for strikes. In cities like Bandung and Yogyakarta, thousands of drivers staged sit-ins at the startup’s local offices, demanding it to turn back to the old fares, according to media reports.

Go-Jek drivers portest at the company’s office in the city of Yogyakarta. Photo credit: Sindonews.

Briefly, the hashtag #SaveDriverGojek was trending on Twitter in Indonesia.

“[Go-Jek’s] partner tariffs are inhumane.” Credit: @Edwin-Arizky

The versatile app lets you order services like house cleaning and massages, but motorcycle rides are the most popular feature.

Go-Jek, in a message to its drivers obtained by Tech in Asia, said that it decided to reduce the minimum fare for several services like food and package deliveries in order to grow the number of those types of orders.

Confusion

One driver told Tech in Asia that, for example, a food delivery within a range of 6 kilometers could have netted him US$1.22 before the change, whereas now he gets only US$0.92 for the same task.

The bonus system is another factor drivers are disappointed with. Drivers get rewarded for picking up many orders a day, each of which gives them points. According to the latest changes, they can get up to US$4.58 extra for accumulating more than 12 points a day, and another 4.58 if they get 14.

Man versus algorithm