Jakarta – Grab Holdings and GoTo Group, which owns Gojek, were among ride-hailing and delivery services targeted by protesting drivers on May 20 in Indonesia, with thousands gathering to demand better compensation and other terms.
The demonstrations come at a delicate time for the South-east Asian internet leaders, as Singapore-based Grab has been negotiating to buy its Indonesian rival for over US$7 billion (S$9.1 billion).
Drivers in Indonesia, a country of more than 275 million people, are protesting against what they describe as exploitative app policies and regulatory negligence.
Over 25,000 car and motorcycle drivers were set to join the protests on May 20, logging off their ride and delivery platforms for 24 hours, according to Garda Indonesia, a group for such workers.
Many had travelled from towns across Java and Sumatra, and camped at locations across the capital Jakarta.
Local media reports showed thousands of drivers gathering at several sites on the afternoon of May 20.
The Presidential Palace, the Transport Ministry and Parliament premises, and app company offices were among sites targeted by the protesters, as well as about a dozen other major cities including Yogyakarta and Surabaya, according to Garda.
In Jakarta, the police said it would deploy more than 2,500 personnel to secure protest sites.
Like their peers globally, Grab and GoTo have been scrutinised by unions and regulators over terms for their drivers, who typically are not on the payroll and do not share the same benefits as full-time employees.
Last week, an Indonesia transport workers' union said it was opposing the planned merger of Grab and GoTo on concerns that their increased market power could suppress drivers' earnings, local news outlet Tempo reported.
The protest is organised by Garda, one of the country's largest driver associations, which accuses the government of failing to enforce platform commission rules introduced three years ago.
"This is the peak of our frustration," Garda chairman Raden Igun Wicaksono said in a phone interview on May 19. "We won't stop until our demands are met. If they aren't, the actions could escalate and tensions may rise."
Drivers are demanding a 10 per cent cap on platform commissions, the removal of discounted ride programmes and regulated pricing for delivery services.
They are also calling on Indonesian President Prabowo Subianto to sanction companies that violate existing transport rules, and urging Parliament to convene a hearing with regulators, firms and driver groups.
Grab has never charged a commission higher than 20 per cent for motorcycle services, Ms Tirza Munusamy, chief of public affairs at the Indonesian unit, said in a statement on May 20.
The company needs the current commission structure to maintain quality, safety and support of its platform and a commission cut would have impact beyond service quality, she said.
Drivers can choose to join other platforms that charge lower commissions, she added.
"It is important to understand that differences in commission rates will affect the support and benefits partners receive."
Meanwhile, GoTo cited its 20 per cent service fee as a way to maintain order volume and finance driver incentives, among other things, according to a statement from a company spokesperson.
It said its services remain available and are running as normal during the protest.
Grab is moving forward with the takeover attempt, evaluating GoTo's accounts, contracts and operations as they work towards combining, Bloomberg reported in March. The companies are seeking to reach an agreement for a deal in the second quarter, Reuters reported in May.
Indonesia is South-east Asia's largest market for ride-hailing services. The protest involves drivers from multiple platforms, including GoTo, Grab, Maxim, inDrive, Lalamove and Sea's Shopee.
A separate driver coalition says it will not join the protest, calling it politically motivated, according to the local media.