Uber brings motorbike service to Jakarta to compete with Go-Jek, Grab

Uber last night launched its on-demand motorcycle ride service in Jakarta under the name UberMotor. It’s essentially the same service Uber already offers for cars, only for motorbikes.

The US-based firm has already tested two-wheel transportation in other countries. Thailand came first, then some cities in India.

Uber’s foray into motorcycles in Indonesia has been long anticipated. After all, the archipelago’s capital is already a major battleground for two large motorcycle-based on-demand services.

Fierce competition

Indonesian local incumbent Go-Jek, as well as Malaysia’s GrabBike have grown their fleets at breakneck speeds since their launch in early 2015. Go-Jek claims to have 200,000 drivers signed up.

Fierce competition between both startups has resulted in extremely low prices to retain customer.

My Go-Jek ride to the office, which is about 12.5 kilometers, would typically cost less than a dollar. For a while, GrabBike was offering free rides for first-time customers. The same ride with a regular motorcycle taxi in Jakarta would have cost four or five times that amount.

Informal motorcycle taxis are abundant in Indonesia’s capital because they help people get around in a city that lacks public transport and is notoriously congested.

Drivers who can’t or don’t want to join motorcycle ride startups have protested the cheap fares offered by venture-capital backed companies, calling it unfair competition.

With UberMotor joining the battle for motorcycle-based transportation in Indonesia, prices are not likely to go up anytime soon. As a starting promotion, Uber said it will offers free rides to new customers until July 11, but capped at a value of US$5.73.