Non–Price Factors as Market Structure Framer and Efficiency in Indonesian Taxi Industry

The collapse of the taxi industry in Indonesia due to the drastic decline of number of taxi firms, from 35 in 2014 remaining only 4 taxi firms, has become one of the government's biggest concerns. The dominance of market share concentrated on Blue Bird and Express and efficiency difference is presumed to be the cause of taxi industry collapse. This study aimed to: (1) measure technical efficiency possessed by Blue-bird and Express, and (2) analyze structure of taxi industrial market in Indonesia. The method used was Data Envelopment Analysis (DEA) to measure the efficiency; whereas multiple linear regression analysis with Panzar Rosse model was applied as well to analyze the market structure. The result indicated that Blue Bird is more efficient in terms of technical efficiency than Express, in addition to market structure that formed in the taxi industry is oligopoly. The number of fleets and capital ownership are non-price input factors which affect the company's income. The oligopoly structure formed led to the situation where taxi firms which did not perform well would lose competitiveness and have to close their firms