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What is Transportation Network Company (TNC)

Handbook of Research on Innovation and Development of E-Commerce and E-Business in ASEAN
A business model that offers prearranged rides or car rentals for a fee, utilizing an online application (app) via a mobile device to connect passengers or automobile renters with drivers/car owners.
Published in Chapter:
Indonesia E-Hailing Taxi: The Competition Between Law and Technology
Yordan Gunawan (Universitas Muhammadiyah Yogyakarta, Indonesia) and Hanna Nur Afifah Yogar (Universitas Muhammadiyah Yogyakarta, Indonesia)
DOI: 10.4018/978-1-7998-4984-1.ch028
Abstract
Transportation development has revolutionized ride-hailing to e-hailing. This alteration impacts many aspects, mostly in economics and employment opportunity. However, this triggers competition with the traditional; moreover, the absence of significant regulation and standards for operation raises conflicts and an uneven market. This research concerns how e-hailing taxi must be regulated under Indonesian law for its certainty and expediency. This considers that the operation of e-hailing taxi in Indonesia is not sufficiently regulated, neither from security risks, tariff limits rates, nor in terms of skilled quality for the labor and so on. The researcher found, if there is no certainty for tis app-based transportation laws, the effects will create an unhealthy and imbalanced market, high-risks, and double standard operation.
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