The Rise of Online Transportation Services Impacts Conventional Taxi Income

The emergence of online transportation services has negatively impacted the performance of conventional taxi services. Lower fares and the ease of use of internet-based transportation modes have led people to switch to online transportation services such as Go-Jek, Grab, and Uber.

Two conventional taxi issuers listed on the stock exchange have experienced declining revenue since 2016, following the boom in online transportation services. Based on published financial reports, PT Blue Bird Tbk's revenue decreased by 12.35% to Rp 4.2 trillion. Similarly, PT Express Transindo Utama's profit for the first three quarters of 2017 plunged by more than 58% to Rp 213.6 billion.

Blue Bird (BIRD)'s profit last year shrank by 16.2% to Rp 424.9 billion from the previous year. Meanwhile, the losses of the Express taxi company (TAXI) in the period (Q1-Q3 2017) increased to Rp 210.4 billion from Rp 81.8 billion in the previous period. Blue Bird, which has collaborated with Go-Jek and created its own online application, My Blue Bird, has managed to prevent its revenue from falling as sharply as Express's.