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http://dx.doi.org/10.13106/jafeb.2021.vol8.no6.1101

Asymmetric Information on Online Transportation Partnership: An Empirical Study in Indonesia  

DERMAWAN, Dodi (Economics Department, Faculty of Economics and Business, Brawijaya University, Faculty of Economics, Raja Ali Haji Maritime University)
ASHAR, Khusnul (Economics Department, Faculty of Economics and Business, Brawijaya University)
NOOR, Iswan (Economics Department, Faculty of Economics and Business, Brawijaya University)
MANZILATI, Asfi (Economics Department, Faculty of Economics and Business, Brawijaya University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.6, 2021 , pp. 1101-1109 More about this Journal
Abstract
The concept of sharing economy is still under debate among experts. Online transportation companies use the concept of a sharing economy with a partnership pattern. The pattern used in such a partnership is different from the common ones. Several studies have found information asymmetry and unbalanced relationships in the partnership. This study aims to identify information asymmetries in online transportation partnerships in Indonesia. Using a qualitative approach with interactive analysis, the informants are online transportation drivers in Malang City. This study finds that drivers have received asymmetric information in terms of order, bonus, and sanctions. Furthermore, they are not the partners of the companies; instead, they are application users, just as customers. All rules and policies are made by the company without involving a driver. Drivers can only accept all policies from the company if they wish to join the partnership. The implication that occurs to the driver causes the driver to lose bargaining power as a partner. However, their income is higher than that before joining the company. The sustainability and future of the driver are very unstable due to the ever-changing rules of the company. Driver loyalty is also considered very low. In light of this trend, the government should enact legislation that spells out the rights and responsibilities of parties involved in online transportation partnerships.
Keywords
Asymmetric Information; Partnership; Online Transportation; Sharing Platform; Sharing Economy;
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