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Jakarta threatens to ban Uber

2014-08-20 13:22

PROTESTS AGAINST UBER: Indonesia has threatened to ban the use of Uber car app services due to due to licensing issues. Image: Paul J Richards/ AFP

JAKARTA, Indonesia - Earlier in August 2014, Wheels24 reported that Germany banned controversial smartphone car-hailing service Uber. Now it seems Indonesia will follow suit.

The Indonesian capital is threatening to shut down  Uber due to licensing issues a week after it officially launched in the city, an official said on Wednesday (August 20).

Jakarta authorities are just the latest to target Uber, an app that has sparked protests from taxi drivers in several countries as it allows customers to hail private rides via their phones.

NO LICENCE TO OPERATE

Jakarta transport agency chief, Muhammad Akbar, told AFP: "In our opinion, the service Uber provides is just like a taxi service, but it doesn't have a licence to operate as one in this city.

"Registered taxis in Jakarta have to meet certain standards, including some to do with safety, so if Uber wants to operate here, it must be held to the same standards - otherwise it's not fair."

Authorities are concerned that Uber's service will undercut the current market for taxis and that the company may evade tax if not registered legally, Akbar said.

The agency is working with the ministry for IT and communications to have the app shut down, Akbar said, adding that it had invited Uber to a meeting a month ago but never received a response.

Uber could not be immediately contacted for comment, but has fended off similar criticism in the past by explaining its service merely links customers looking for a ride with those who have a car, and does not own or operate its own fleet. The company began by linking users of its apps to luxury car operators, but then decided to offer a broader selection of cars and include a ride-sharing option.

MORE RESISTANCE?

In Jakarta, it currently only links to services offering paid-for trips in upmarket cars.

The California-based app, operating in 170 cities spread across dozens of countries, including South Africa, is the most prominent of several that are shaking up the traditional taxi landscape in cities around the world.

Uber has already faced significant resistance from regulators in several countries, who accuse it of unfair competition and lack of standards.

Jakarta is flooded with some 20-million people on any given work day and taxis are a common mode of transport in the congested city, which is poorly covered by public transport.

UBER IN SA

Is Uber’s mobile phone app just a “new toy” on the market or does it have the 

potential to change South Africa’s cab industry? South Africa was Uber’s only African outpost until August 2014, when it reached Lagos in Nigeria.

Since its launch in 2009, Uber has spread to 145 cities across the globe - much to the alarm of cab drivers in London, New York and beyond.

But how will it affect South African taxi cab drivers? 

News24 finds out..

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Read more on:    uber  |  jakarta  |  indonesia  |  taxis

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