Grab pushes back as drivers demand sweeping reforms to platform model

Grab Indonesia has rejected a key demand made by tens of thousands of protesting motorcycle taxi drivers, as the country's dominant ride-hailing player signals support for fare increases amid growing driver unrest.

On 22 July 2025, members of the Indonesian online motorcycle taxi drivers association, Garda Indonesia, staged a mass protest at Jakarta's National Monument and disabled their apps in a coordinated show of defiance. The demonstration - which included a partial service blackout across the Greater Jakarta area - marks the latest flashpoint in an ongoing battle over the economics of platform labour in Southeast Asia's largest digital economy.

At the centre of the protest are five core demands that drivers say are vital for their long-term survival. Chief among them is a proposed 90:10 revenue split in favour of drivers - a stark departure from the current model, where platform providers typically take a 20% cut.

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Grab Indonesia has firmly rejected the revenue-sharing demand. The current commission structure supports 24-hour app operations, accident insurance, educational programmes, and other welfare initiatives, said Tirza Munusamy, chief of public affairs at Grab Indonesia, as quoted by Tech in Asia. She added that a 90:10 split would compromise the sustainability of the business model.

Structural change, not just fare hikes

Despite opposing the commission cut, Grab has expressed support for the Indonesian government's proposal to raise fares - a move the company sees as overdue.

However, Garda Indonesia has warned that fare hikes, if not accompanied by a cap on platform commissions, could simply shift the burden onto customers - potentially fuelling inflation and pushing users toward other forms of transport.

"The application fee deduction should not be redirected by raising fares, as this will burden customers," said Igun Wicaksono, Garda's general chairperson, in a statement to Tempo. "This means that the fare hike will not solve the problem."

Garda's full list of demands paints a broader picture of a platform labour force that sees itself at a growing disadvantage. The demands include a formal online transportation law, capping commissions at 10%, tariff regulation for goods and food delivery, an investigative audit of platform companies, and the abolition of membership and prioritisation schemes.

The protest movement is shaping into a critical test of how much influence drivers can exert on the digital gig economy that has reshaped urban mobility in Indonesia.

While the government, including President Prabowo Subianto's administration, has yet to formally respond to the latest demands, the pressure is mounting on both regulators and platforms to rethink the power balance between algorithm and labour.

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