Application deductions are increasingly suffocating, Ojol’s income remains this much

Application deductions are increasingly suffocating, Ojol's income remains this much

Jakarta, Reportase – Several years ago, the online ojek (ojek) profession was a target. Many people who previously had regular jobs eventually switched professions to become ojol drivers.

But now, the ojol profession is no longer an option. In fact, based on research by a London School Economics (LSE) Doctoral Student, Muhammad Yorga Permana, two-thirds of the 1,000 drivers surveyed in Jakarta chose to become employees over ojol drivers.

“Two-thirds of them said they could choose, preferring traditional jobs [jam kerja] 9 to 5 than working as an online transportation driver,” wrote the study quoted from the official LSE website.

Asked to comment on the results of the research, the general chairman of the Garda Indonesia Online Motorcycle Bike Driver Association, Igun Wicaksono, also mentioned a similar fact. The reason for changing the profession is because their income continues to decline.

He explained that in the first phase when the new ride-hailing platform was available, drivers’ salaries could reach IDR 5-10 million per month. However, currently it has decreased to 50% and some have even decreased below the Provincial Minimum Wage (UMP).

“Little by little changing professions, some are returning to office jobs, entrepreneurs,” Igun told ReportaseWednesday night (30/3/2023).

“Many are changing professions. Looking for a more permanent profession that provides income to support their family. At least they can have UMP income,” he added.

Many of them also make the ojol profession as a side or part time. This is different from before who chose to switch to being an ojol driver full time.

The decline in revenue from drivers, Igun explained, came from application companies. They are said to apply very high discounts to drivers.

“More and more people here are decreasing because application companies apply discounts outside of which our demand is very high,” said Igun.

The decline in the income of ojol drivers was also revealed in the LSE research. It was stated that the decline had occurred even before the Covid-19 pandemic occurred, in 2019 and was different from the initial presence of the platform.

“Unlike at the beginning of its presence, the daily bonus scheme offered by the application is no longer attractive,” wrote the report.

[Gambas:Video CNBC]

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