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Sharing Economy

Grab and Go-Jek face the new challenge of fare regulators

Singapore and Indonesia say they want to safeguard drivers and riders alike

Regulators in Singapore and Indonesia could force ride-hailing operator Grab and Go-Jek to set parameters for their fares -- and kick off a global trend (Photo by Kosaku Mimura).

SINGAPORE -- Indonesian and Singaporean lawmakers are tightening regulation of ride-hailing fares in a sign that authorities are increasing oversight of service providers such as Grab and Go-Jek now that apps have become key links to mass transportation.

The recent development could weigh on the ride-hailing operators' dynamic pricing model, in which fares vary based on supply and demand to maximize profits, forcing them to rethink their pricing strategy.

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