Taxi Business Model in Indonesia

The business model follows an “ownership – partnership” model where the driver “owns the car”  by paying a 6 year installment to the company

The car is typically a Toyota Limo (the taxi brand for Toyota Vios, which lowest version retail at IDR 212 million. The Limo version should come in cheaper)

Taxi driver pays:

–          Down payment for car at IDR 5 million

–          Daily installment payment at IDR 200 k, for 6 year, this amounted to IDR 438 million

–          Daily admin and services fee at IDR 30 k (Car wash, etc)

–          Perishables like oil, tires, braked pads (sold by company at double market priced, driver take a loan from the company, loan is paid daily)

–          Spareparts (same practice)

This is a rente business model almost as good as it gets. Perhaps the only thing more rente is financial based rents (taxes, transfer or remittance fees, banking account admin fees, payment fees, escrow fees)

The taxi company is in effect an expensive middlemen between suppliers (car company, spare part producers, etc) and the driver, abusing the driver’s lack of capital (to buy car at market financing rate, to buy car parts at market price) to force driver to buy overprice supplies from the company.

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Voluntary Method of Distributing Economic Power –

I have these ideas for quite some time, articulating it take a wee bit of selection since the only precedence for the exact thing I want to propose exist in my mind. References to what I have in mind already existed for many years, yet I’m not sure whether this idea is ready to be hatch. Now, a recent article in the New York Times makes me feel that maybe this time is right, to start poking around with this. This essay will give a thesis on the cession of legal, political, and economic power in history; why forced cession of power doesn’t work; samples of power cession in history that do work; and that economic power is the only centralized power left, yet no appealing and reliable non-violent method of distributing economic power has been found.

Kings used to have it all, they have all the legal, political, and economic power in their domain. They ceded it to no one, and why should they, it’s damn good to able to do all you pleased, and if humans are subservient to the laws of nature, it’s only natural for the alpha male to hold on to it’s powers. Yet, throughout history, man’s advancement is a story of an alpha male or woman giving part of their power to fellow man, either willingly, by persuasion, or by pure force.

In most events, this cession of power happens by the 1st two methods, since almost by definition, the despot has all the force, so his subject cannot ‘force’ him to give some of his privilege while expecting such rights to be continuously given to them. Witness the French revolution, a by forced submission of power by the people, what happens is the rise of another emperor. Only when this next emperor is in exile, the republic can truly flourish. Yet even when he was in exile, there are people still loyal to him, wanting him to be emperor, distrustful of they and their fellow man’s ability to rule themselves without king (or simply to get a share of power when the man they support do become emperor again). Witness the dynasty after dynasty in China, when one emperor finally brought down by peasant rebellion, another emperor reigns, usually the leader of the rebellion themselves.

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Why being an entrepreneur is a must and how technology is the opportunity wedge for would be entrpreneurs

If we look at how classes are formed as a society/ nation/ country become more prosperous, we can see why being an entrepreneur is a must.

The more economically advance a country is, the more obvious and constraining the social structure in that country; the more advance one country, classes of society becomes more apparent and social mobility becomes more difficult.

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A pinch of naive is the price to innovate

One of my responsibility is “creating and implementing sales improving initiatives”, i’m new to this responsibility, so i’ve been called inexperience and even naive.

For me, the inexperience part is inevitable since i’m still quite young, but naive part, is really, a deliberate option on my part.

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Respect the sales force

I had wanted to write about this sometime ago, but i didn’t because i thought i might sound…hollow

I myself am not a sales guy, as in I never do sales function as a living, so who am I to speak about why sales guys need to be respected.

Well, I think there’s 2 major reason:

1. There’s no bottom line without the top line, all this talk about “think about the bottom line, the bottom line!!” is pretty much bullshit without the sales force. No sales, no revenue, then you can throw all your strategic initiatives and cost cutting and efficiency and optimization to heck. No sales, no revenue, no bottom line.

2. Considering the 1st reason, there’s simply a gross lack of respect for the sales force. Yeah, some people pat them in the back while on one-on-one face-to-face communication, but a secret contempt is apparent when they address the sales force in the public of the sales force, and a more overt contempt when they speak about the sales force behind their back.

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Is it really there? This difference between the gen Y’s and the other generations?

I’ve read some articles (newspaper, mags, blogs, and pieces of books) about the difference between Gey Y (~ 1980-1999), Gen X (~ 1965-1980) and Baby Boomers (~ 1945-1965) in the work place. I wonder whether these articles are really relevant, some parts of it is not, but i found some part of comparison which are somewhat accurate.

The potential fallacies of such comparison

As I read these articles I feel that it somehow has a disconnect with reality due to several things:

1. They have to make some generalities and generalities can be false (the generalities are not representative of a dominant, significant, or important part of the population), unrepresentative (it can only represent one part of the entire population), and incomparable (the segment of Gex Y compared is different to the segment of Gen X compared, you could be comparing qualities of the top 10% of Gen Y with the 50% of Gen X)

2. It’s mostly made by American to explain a piece of social segmentation with the American context. Since different GDP allows access to different level of education (better paid teachers, better class room, better teaching equipments, better museums, better libraries, etc) the portrayal made in these articles might not be relevant for Indonesia.

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How organization can be stiffled by their mindset about people

After working some more and see more workings of other organization, i’m impressed by the extent of the role of people in the organization.

Saying “organization is all about the people in it” make sense, since organization is nothing but a group of people working toward a (supposedly) common goal or purpose.

But to see that all competitive advantage is created or destroyed by people in an organization is…scary, a company could build a dominant business for decades, and then they have the wrong mindset about people and everything could go bust or slowly dies.

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