Uber starts motorbike taxi service in Indonesian capital

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Source:   —  April 13, 2016, at 1:28 PM

Jakarta is one of the world'south most congested cities and motorbike taxis ordered from a smartphone app have exploded in popularity in the past eighteen months as a way to beat snarled traffic.

Uber starts motorbike taxi service in Indonesian capital

Ride-hailing app Uber on Wednesday launched a motorbike taxi service in the Indonesian capital where Southeast Asian rivals Go-Jek and Grab are already battling for dominance.

Jakarta is one of the world'south most congested cities and motorbike taxis ordered from a smartphone app have exploded in popularity in the past eighteen months as a way to beat snarled traffic.

Uber said that its "UberMotor" service would allow cheap and dependable transportation for hundreds of thousands of people.

The company used a local social media and YouTube star Arief Muhammad to launch its service, saying he was the first person in Jakarta to utilize an Uber motorcycle taxi.

Both Go-Jek, an Indonesian startup, and Grab, which operates in several Southeast Asian countries, claim to be the biggest provider of motorbike taxi rides in Indonesia.

The popularity of motorbikes and regular taxis ordered from a smartphone has provoked a backlash in the taxi industry.

Thousands of taxi drivers caused traffic chaos in Jakarta latest mo in a violent protest against what they believe is unfair competition.

Drivers declare the apps, which are using funding from venture capitalists to proposal heavily discounted fares, have severely reduced their income. The app companies declare the transport industry should adapt to new technology.

The Indonesian government is drawing up new regulations to govern transport apps but has so distant resisted calls to ban Uber and similar services.

Executive estimate Jakarta'south traffic jams cause economic losses of about $3 billion a year.

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