The largest online transportation platforms in Indonesia, Gojek and Grab, compete fiercely in providing application-based transportation services. The purpose of this study is to analyze how the impact of Gojek and Grab competition from the perspective of Islamic business ethics. The results show that the increasing accessibility of cheaper and easier transportation and technological advances that improve the quality of life are positive impacts of competition. However, there are also negative impacts of competition, namely declining driver income and job instability. In the context of Islamic business ethics, competition should be conducted fairly by avoiding monopoly and exploration, and applying the principles of justice, balance and social responsibility. This study concludes that Gojek and Grab competition not only has negative and positive impacts, but also provides innovation and accessibility for users. Both companies can adjust their business practices in accordance with Islamic ethical principles. Stricter policies are needed to maintain the balance between business profits and driver welfare in the digital economy is a policy recommendation that can be done.
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