Determinant Study of Conventional Transportation and Online Transportation

Abstract

The various public transportation choices based on the development of information technology developed rapidly at the beginning of this decade. Transportation is an important element and serves as the lifeblood and economic, social, political and population mobility that grows together and follows developments that occur in various fields and sectors. Many transportation companies offer and try to attract passengers to be interested in the products and services offered. The phenomenon of the development of information technology at this time facilitates public transportation consumers who are considered the most efficient in terms of access and cost aspects, besides that consumers are facilitated by the development of information technology at this time, especially for ordering. Businesses that utilize virtual applications to facilitate ordering transportation are Go Car (Go jek) and Grab businesses. According to Yustika (2003), the efficiency of the institutional design of an organization or business can be measured using analytical tools namely transaction costs. The higher the costs incurred in economic activities, the more inefficient the institutional design. Conversely lower costs incurred in the economic activity mean that the institutional efficiency has been designed.