Online Transportation Price War: Indonesian Style

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. (English) [ABSTRACT FROM AUTHOR]