Shares of Express Transindo Utama, listed on the Indonesia Stock Exchange, surged 26.80 percent to IDR 194 a piece in the first trading session on Monday (19/12) after the news.

Over the past few years, Indonesian taxi operators have had it rough as ride-hailing firms such as Uber and GrabCar gained popularity due to cheap rates and the easy-to-handle app on mobile devices. Another important factor why people prefer to use a ride-hailing firm is because the tariff is set in advance and therefore it is in the interest of the driver to take the shortest route (a taxi driver would prefer to take it slow as that would let the meter run as long as possible).

Allowing Express drivers to take orders from the Uber app (through the new partnership) is therefore a good move. For Uber the partnership is necessary as - in line with local regulations - it needs a local partner in Indonesia. It is, however, not known when the program begins.

After Blue Bird, Express Transindo Utama is Indonesia's second-largest taxi operator, with a fleet of more than 11,000 taxis. Earlier this year, Blue Bird teamed up with Indonesian ride-hailing app Go-Jek.

Stock Quote Express Transindo Utama - TAXI: