Rapacious Capitalism?: Considering the Ride-Hailing Application Business in Jakarta, Indonesia

Abstract

This chapter examines the nature of soft power management of ride-hailing applications (RHA), namely Grab, through a quantitative data survey of 453 drivers and 500 passengers during the Covid-19 pandemic in Jakarta in 2021-2. The empirical study explores the co-existing and at times, conflicting relationships between passengers and drivers within the same residential area of Jakarta. RHA has led to the marginalization of drivers due to contemporary digitalization. Unreasonable demands from passengers can be interpreted as bullying, harassment and human rights violations. Furthermore, even a slightly negative review from a harsh passenger can result in a driver being excluded from the assignment by the algorithm. Conversely, the system in which drivers' rate passengers tend to eliminate the few bad ones. Here an irony lies in the conflict and emphasis between two principal agents: the driver and the passenger. The party who gained the maximum dividends was the RHA company in charge of control, such as Grab, which allocates managerial resources to enhance passenger customer satisfaction. This indicates a tendency to prioritize this aspect. However, it is imperative to stress the importance of considering a more decent working environment for drivers. This requires a balanced approach that simultaneously addresses passenger satisfaction and recognizes the importance of ensuring optimal working conditions for drivers.