Rajawali’s Express Taxi: Working with Taxi Drivers as Business Partners in Indonesia

The 1997 Asian financial crisis created a job vacuum in Indonesia, with companies forced to lay off 1.4 million workers. A decade later, unemployment rates continue to rise and poverty defines the context for Indonesia’s economy, social relations and security. Express Taxi, a subsidiary of the diversified conglomerate Rajawali and the second-largest taxi operator in Indonesia, launched a new Taxicab Ownership Scheme where drivers lease their taxis and build toward ownership.

Express Taxi uses the company reputation and assets to back the loans. The drivers gain by earning more take-home income. The company profits from drivers who treat vehicles responsibly and bring more stable cash flows. The community benefits from drivers who drive more safely with their own cars, with added support from company-provided safety courses. The case highlights how a company can help fight poverty by forging a mutually beneficial partnership with employees from poor urban and rural communities.

Further information


Categorisations

Partnership types

Doing business with the poor

Regions / countries / territories

Asia: Indonesia

Global issues

Job creation and enterprise development; Financial accessibility and management;...show all (3)

Business sectors

Leisure, hospitality, tourism and sports; Transportation and logistics