Mobile Commerce

Uber Takes The eCommerce Route In Indonesia

After being recently shut down in multiple countries over its controversial “tech company” status, Uber seems to have found a workaround at least in Indonesia.

The company has announced plans to register itself as an eCommerce business so as to avoid taxes, and taxi-medallion regulations, which has brought troubles to its door in almost all of its major business markets.

With the registration, the company plans to establish itself as a foreign-owned entity registered as an Internet portal, said Uber Indonesia’s Country Head Alan Jiang, the Financial Times reported.

“Indonesia is a super-key market for us,” he said.

The ride-hailing company has been cutting corners in its everlasting struggles against local and national laws in all of its market, but in Indonesia the plans come after the local police in Jakarta arrested five Uber drivers as part of a wider investigation in a case filed by other taxi companies accusing Uber for challenging market rates with its predatory pricing scheme.

For expanding its business in the country, Uber has not only been offering its service for 30 percent less than the main local taxicab companies, but has also not been charging commission on rides, Jiang said.

“In the future we will take a service fee and when we do we will pay all the applicable taxes on that,” he said. “I don’t have a specific timeline for when.”

As it struggles to keep its business open in several markets, the company has repeatedly justified its business model. “Uber is a technology company,” the company said. “We do not own, operate vehicles or employ drivers.”

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