Ride-share drivers find ways to survive COVID downturn - 360
Chotib
Published on June 19, 2023
The COVID-19 pandemic decimated the incomes of Indonesian motorbike and car drivers working for ride-sharing apps. But they found creative ways to survive.
For Taufik, restrictions on mobility due to the COVID-19 pandemic significantly reduced his income working as a motorbike driver for popular ride-sharing apps.
Taufik is one of more than two million motorbike and car ride-share drivers in Indonesia who faced similar challenges during the pandemic.
Covid restrictions and changes in consumer behaviour fundamentally altered the ride-sharing industry in Indonesia, making it less lucrative and less stable for drivers. It is unclear whether the industry will fully recover.
When Covid first struck, motorbike ride-share drivers were prohibited from carrying passengers to reduce the risk of transmission between drivers, passengers and broader community.
With many working remotely, there was also a drastic reduction in the number of passengers using ride-sharing services.
Due to government regulations like the Large-Scale Social Restrictions (PSBB) in April 2020 and the Community Activities Restrictions Enforcement (PPKM) in July 2021, a study revealed ride-share drivers experienced a significant decline in their incomes.
The average monthly income of motorbike drivers plummeted from 8.5 million rupiahs ($USD570) before the pandemic to less than 1 million rupiahs ($USD67) during the pandemic.
According to a survey by the Demographic Institute at Universitas Indonesia in May 2020, approximately 63 percent of Gojek (ride-sharing app) motorbike and car drivers, totaling around 26,000 individuals, reported zero income during the pandemic.
Meanwhile, 36 percent mentioned a reduction in their income.
The majority of drivers have families and do not have alternative sources of income, forcing them to work longer hours to meet their needs, a situation exacerbated by their lack of savings.
The income they received was not enough to cover expenses such as food, rent, electricity bills, children’s education and debt payments, meaning they had to find creative ways to survive during the pandemic.
A drop in the number of passengers was counterbalanced by an increase in delivering groceries and other essential items to customers’ doorsteps.
This change resulted in an additional three to four working hours for drivers during off-peak times.
Some also took on side hustles like providing delivery services, offering assistance with household chores or repairs, engaging in freelance work such as repair of electronic devices, online sales or even starting small business ventures.
Many drivers’ wives also became second earners, engaging in home-based businesses with their husbands such as operating small shops, selling clothes online or becoming household helpers.
Motorbike and car ride-sharing drivers had to cut back on expenses and often borrowed from relatives.
They also received assistance from the government, ride-sharing platforms and consumers who voluntarily paid more for their services.
In urgent situations, household needs were sometimes supported by drivers’ parents to ensure sufficient food, shelter, and clothing during the pandemic.
Though the government dismissed all the COVID community restrictions in December 2022, many ride-share drivers are still struggling to return to their pre-pandemic income levels.
Coupled with big discounts being offered by the ride-sharing companies to passengers, the attractiveness of being a ride-share driver may no longer be what it once was.
Chotib is a lecturer and senior researcher in the Demographic Institute, Faculty of Economics and Business, Universitas Indonesia. He is also the head of Urban Studies Program, School of Strategic and Global Studies Universitas Indonesia. His research interests are migration and urbanization, population projection, and labor force.
Rizqika Alamsyah graduated from the Faculty of Economics and Business, Universitas Indonesia.
This article is part of a Special Report on ‘Shock mobility’, produced in collaboration with the Calcutta Research Group.
Originally published under Creative Commons by 360info™.