Conventional Taxi Income Remains Sluggish

The emergence of online transportation services, both two-wheeled and four-wheeled vehicles, has severely impacted the performance of conventional taxi services. Revenue for two conventional taxi operators listed on the Indonesia Stock Exchange remains sluggish. Revenue for PT Blue Bird Tbk and PT Express Transindo Utama Tbk continued to decline in the first three months of 2017.

Despite collaborations with internet-based taxi operators, the performance of conventional taxi companies has yet to recover. Blue Bird's revenue in the first quarter of 2017 fell by 18.43 percent to Rp 1.04 trillion from the same quarter of the previous year. As a result, Blue Bird's profit in Q1 2017 also decreased by 15 percent to Rp 117.5 billion from Q1 2016.

Similarly, Express taxi operator's revenue for the first three months of 2017 plummeted by more than 60 percent to Rp 78.3 billion from the same period the previous year. Consequently, Express Transindo's losses in the first quarter of 2017 surged by almost 500 percent to Rp 58.5 billion compared to the same quarter of the previous year. The rise of online motorcycle taxis and online taxis has changed people's transportation habits, particularly regarding the use of conventional taxis.