Uber gets more affordable in Indonesia with UberX launch in Jakarta

Uber has had some tough times in Indonesia, but the company is not backing down. Despite Jakarta’s government insisting that Uber should follow the city’s regulations for taxi services or face shut down, Uber is still rolling. Today Uber launches its most affordable on-demand cars, UberX, in Jakarta.

“All over the world what we’ve seen is that people are looking to save money on things and transport is a very important people’s budgets. We’re proud to say that UberX will be the least expensive way to travel around Jakarta other than walking or buses,” explains Michael Brown, Uber general manager for Southeast Asia, to the Jakarta Globe.

UberX’s base fare starts at Rp 3,000 (US$0.23), with an additional Rp 300 (US$0.02) per minute and Rp 2,001 (US$0.16) per kilometer. Jakarta’s Blue Bird taxis start at Rp 7,500 (US$0.59) with Rp 4,000 (US$0.32) added for each kilometer.

In contrast, UberBlack’s base fare is Rp 7,000 (US$0.56), with additional charge of Rp 500 (US$0.04) and Rp 2,850 (US$0.23) for each minute and kilometer passed respectively. So UberX’s more affordable pricetag is indeed a huge game changer in the city.

UberX drivers have vehicles like the Toyota Avanza and Daihatsu Xenia, while UberBlack offers higher-grade cars such as the Toyota Innova and Hyundai Sonata.

Perhaps the most daunting task for UberX is to keep up with the demand for rides. I’ve been rejected three times when wanting to use UberBlack in West Jakarta. It appears Uber’s current focus is passengers in Central and South Jakarta. So far, the company has declined to share the number of vehicles it offers in Indonesia.

Uber faces competition from GrabTaxi in the city, although GrabTaxi uses licensed city cabs. Other traditional taxi services like Blue Bird Group and Express might take action in some way against UberX.

See: Why Uber will fail in Jakarta, and why it won’t

Jakarta government saga

Brown says that Uber has been explaining its business model to the Jakarta government, as well as local transportation organizations. The dialogue, according to him, “has been very productive.” He adds:

The most important thing is that we’ve been able to explain our model — that we’re a tech company. We don’t own or operate any vehicles. As the government understands that better, we’re making good headway.

Very recently, Uber has also launched its UberBlack service in Bali.