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PT Aplikasi Karya Anak Bangsa
Go-Jek
Industry
Founded12 October 2010 (2010-10-12)
Founders
Headquarters
Jakarta, Indonesia
Number of locations
Indonesia, Vietnam, Thailand, Singapore
Key people
Andre Soelistyo (President)
Dayu Dara Permata (VP)
Number of employees
10,572 (2019)
Websitewww.go-jek.com

PT Aplikasi Karya Anak Bangsa, doing business as Go-Jek (stylized as GO-JEK), known in Vietnam as Go-Viet and Thailand as GET, is a transportation network company and logistics startup company based in Jakarta, Indonesia. It is the first unicorn company,[1] and also the first "decacorn" company in Indonesia.[2] It is the only company in Southeast Asia that is included in Fortune's 50 Companies That Changed the World in 2017, and ranked at 17 along with Apple Inc. (3rd), Unilever (21st), and Microsoft (25th).[3] Go-Jek operates in Indonesia, Vietnam, Singapore, Thailand and will soon operate in the Philippines and Malaysia.[4][5][6][7] As of February 2019, the estimated value of the company is about US$10 billion.[8]

Go-Jek ranks in Top 10 most Powerful Brands in Indonesia[9] and Top 3 Most Powerful Transportation/Logistic Brands.[10] Go-Jek has won financial backing from investors including Google, Singapore's sovereign wealth fund Temasek Holdings and Chinese internet giant Tencent.[11] The company also has investment in Pathao, a transportation network company operating in Bangladesh.[12][13]

History

Gojek's first logo, used until July 21st, 2019.

The name Go-Jek comes from the term “Ojek” or motorbike taxis[14] commonly found throughout Indonesia. Founded in 2010 with 20 motorbike drivers,[15] its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May 2018.[16][17] Go-Jek app was launched in January 2015,[18] and in less than two years, the app racked up nearly 30 million downloads.[19] Go-Jek has partnered with Singapore's biggest bank DBS. [20]

Go-Jek was founded by Nadiem Makarim, a native Indonesian, who holds degrees from Brown University and Harvard Business School. He worked at McKinsey and Co. consulting for three years[21] before starting Go-Jek from a tiny call centre with only 20 ojek drivers, who later became recruiters.[22] As a loyal ojek user, Nadiem discovered that ojek drivers spend most of their time waiting for customers, while customers waste time walking around looking for an available ojek. Go-Jek was built to solve this problem, by providing a platform where drivers and riders can connect efficiently and allowing those drivers to improve their income.[10]

As of May 2018, the app offers 18 services,[23] with 2 upcoming new services in the online content business,[24][25] which makes for a total of 20 on-demand services under one platform. Being an Indonesian-run startup played to Go-Jek’s advantage in navigating the local regulatory environment, as well as understanding the local market. This enabled them to bundle features into its app that better suits both local drivers and local consumers.[26] Go-Jek recruited 100 new graduates in engineering domain from India in 2017.[27]

Financing

Go-Jek's journey in becoming a unicorn startup started in mid-2014, when its rising popularity resulted in raising a higher than targeted $1.5 billion[28] in a fundraising round. This solidified Go-Jek's status as a "unicorn" startup, and it became the most valuable startup in all of Indonesia. It has also mentioned interest in exploring the possibilities of becoming the first-billion dollar startup to hold an initial public offering,[29] with no specific time frame.[28]

After closing a round of funding in August 2016 that raised up to $550 million,[30] two of Indonesia’s biggest companies, Astra International,[31] and Blibli.com, invested in Go-Jek.[32] International investors include tech giants such as American firm Google[33] and China’s Tencent,[34] along with the global investment company Temasek.[35] A survey revealed Go-Jek as the most popular ride-hailing app in Indonesia.[36] The company is valued at about $5 billion as of February, 2018,[37] which exceeds the total market cap of all transportation companies in Indonesia Stock Exchange (IDX).[38]

In May 2018, it was announced that Go-Jek is investing $500 million towards its international expansion strategy. [39]In January 2019, the startup closed another round of financing for $2 billion. The total valuation of the company reached $9.5 billion.[40]

Acquisitions

The company's rapid growth triggered a chain of acquisitions and partnerships. In 2016, Go-Jek announced acquisition of two engineering startups based in India, C42 Engineering and CodeIgnition,[41] and established a development centre in Bangalore, India.[42] They also acquired Leftshift, an Indian mobile application developer,[43] and Pianta, an Indian home healthcare startup.[44]

In 2017, it acquired Loket.com, one of Indonesia’s biggest online ticket booking and event management system company.[45] In the same year, it acquired three large network fintech firm in Indonesia; Kartuku, Midtrans, and Mapan, in order to expand its payments business.[46][47]

In June 2019, it acquired AirCTO, an AI recruiting platform based in Bangalore, India.[48]

Partnerships

In 2016, it announced collaboration with Blue Bird, a major Indonesian taxi company.[49] The same year it launched Go-Car, expanding ride-hailing from motorbike fleet to cars, and launched Go-Auto, providing on-demand mechanic services. By August 2016, it had become Indonesia's first online transportation system.[30]

In running their GPS, it partnered with Google Maps.[50] Other partnerships include entertainment; Google Play and MNC Vision. Bill Payment; AEON Credit Service & Suzuki Finance Indonesia. And the national electricity provider PLN, as well as the national health insurance BPJS Kesehatan.[51]

In February 2019, Garuda Indonesia CEO Ari Ashkara told Reuters that Garuda is in advanced discussions with Go-Jek for the delivery of products sold on Go-Jek across 17,000 Indonesian Islands.[52]

Impact

A research study reports that the average income of full-time driver partners (Rp 3.48 million per month) is 1.25 times higher than the average minimum wage in Indonesia (Rp 2.8 million per month). The average income of driver partners (Rp 3.31 million) is higher than professional employees in general (Rp 3.10 million for transportation sector employees; Rp 2.34 million for industrial sector employees; Rp 2.66 million for staff employees).[53]

As per Temasek Digital's YouTube channel, Go-Jek has contributed an estimated Rp 9.9 trillion (US$732 million) annually to the Indonesian economy[54]

Another research article reported that Go-Jek contributed Rp 8.2 trillion annually into the Indonesian economy through the income of driver partners, an additional Rp 138.6 billion per month are contributed into national economy since SME merchant partners join Go-Food, and Rp 1.7 trillion into Indonesian economy through the income of SME merchant partners.[55][56][57][58]

Go-Jek centres

History

The name Go-Jek comes from the term “Ojek” or motorbike taxis[59] commonly found throughout Indonesia. Founded in 2010 with 20 motorbike drivers,[60] its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May 2018.[61][62] Go-Jek app was launched in January 2015,[63] and in less than two years, the app racked up nearly 30 million downloads.[64] Go-Jek has partnered with Singapore's biggest bank DBS. [65]

Go-Jek was founded by Nadiem Makarim, a native Indonesian, who holds degrees from Brown University and Harvard Business School. He worked at McKinsey and Co. consulting for three years[66] before starting Go-Jek from a tiny call centre with only 20 ojek drivers, who later became recruiters.[67] As a loyal ojek user, Nadiem discovered that ojek drivers spend most of their time waiting for customers, while customers waste time walking around looking for an available ojek. Go-Jek was built to solve this problem, by providing a platform where drivers and riders can connect efficiently and allowing those drivers to improve their income.[10]

As of May 2018, the app offers 18 services,[68] with 2 upcoming new services in the online content business,[69][70] which makes for a total of 20 on-demand services under one platform. Being an Indonesian-run startup played to Go-Jek’s advantage in navigating the local regulatory environment, as well as understanding the local market. This enabled them to bundle features into its app that better suits both local drivers and local consumers.[71] Go-Jek recruited 100 new graduates in engineering domain from India in 2017.[27]

Financing

Go-Jek's journey in becoming a unicorn startup started in mid-2014, when its rising popularity resulted in raising a higher than targeted $1.5 billion[28] in a fundraising round. This solidified Go-Jek's status as a "unicorn" startup, and it became the most valuable startup in all of Indonesia. It has also mentioned interest in exploring the possibilities of becoming the first-billion dollar startup to hold an initial public offering,[72] with no specific time frame.[28]

After closing a round of funding in August 2016 that raised up to $550 million,[30] two of Indonesia’s biggest companies, Astra International,[31] and Blibli.com, invested in Go-Jek.[32] International investors include tech giants such as American firm Google[73] and China’s Tencent,[74] along with the global investment company Temasek.[75] A survey revealed Go-Jek as the most popular ride-hailing app in Indonesia.[76] The company is valued at about $5 billion as of February, 2018,[77] which exceeds the total market cap of all transportation companies in Indonesia Stock Exchange (IDX).[78]

In May 2018, it was announced that Go-Jek is investing $500 million towards its international expansion strategy. [79]In January 2019, the startup closed another round of financing for $2 billion. The total valuation of the company reached $9.5 billion.[80]

Acquisitions

The company's rapid growth triggered a chain of acquisitions and partnerships. In 2016, Go-Jek announced acquisition of two engineering startups based in India, C42 Engineering and CodeIgnition,[81] and established a development centre in Bangalore, India.[82] They also acquired Leftshift, an Indian mobile application developer,[83] and Pianta, an Indian home healthcare startup.[84]

In 2017, it acquired Loket.com, one of Indonesia’s biggest online ticket booking and event management system company.[85] In the same year, it acquired three large network fintech firm in Indonesia; Kartuku, Midtrans, and Mapan, in order to expand its payments business.[86][87]

In June 2019, it acquired AirCTO, an AI recruiting platform based in Bangalore, India.[88]

Partnerships

In 2016, it announced collaboration with Blue Bird, a major Indonesian taxi company.[89] The same year it launched Go-Car, expanding ride-hailing from motorbike fleet to cars, and launched Go-Auto, providing on-demand mechanic services. By August 2016, it had become Indonesia's first online transportation system.[30]

In running their GPS, it partnered with Google Maps.[90] Other partnerships include entertainment; Google Play and MNC Vision. Bill Payment; AEON Credit Service & Suzuki Finance Indonesia. And the national electricity provider PLN, as well as the national health insurance BPJS Kesehatan.[91]

In February 2019, Garuda Indonesia CEO Ari Ashkara told Reuters that Garuda is in advanced discussions with Go-Jek for the delivery of products sold on Go-Jek across 17,000 Indonesian Islands.[92]

Impact

A research study reports that the average income of full-time driver partners (Rp 3.48 million per month) is 1.25 times higher than the average minimum wage in Indonesia (Rp 2.8 million per month). The average income of driver partners (Rp 3.31 million) is higher than professional employees in general (Rp 3.10 million for transportation sector employees; Rp 2.34 million for industrial sector employees; Rp 2.66 million for staff employees).[93]

As per Temasek Digital's YouTube channel, Go-Jek has contributed an estimated Rp 9.9 trillion (US$732 million) annually to the Indonesian economy[94]

Another research article reported that Go-Jek contributed Rp 8.2 trillion annually into the Indonesian economy through the income of driver partners, an additional Rp 138.6 billion per month are contributed into national economy since SME merchant partners join Go-Food, and Rp 1.7 trillion into Indonesian economy through the income of SME merchant partners.[95][96][97][98]

Go-Jek centres

Go-Jek operates in the many large and medium size Indonesian cities, [99] and also in rural area within Indonesia;

Go-Jek launched its ride-hailing service in Singapore on Jan 10, 2019 as part of "an enhancement of its beta phase". Its president, Andre Soelistyo, said that it is committed to "bringing choice back to the ride-hailing market in Singapore".[100] In February 2019, Go-Jek Singapore appointed management consultant and mountain climber Lien Choong Luen as the GM of its Singapore operations.

International

Go-Jek has an office in Singapore, with data science and engineering capabilities,[101] and Bangalore, India, which was created with the acquisitions of C42 and CodeIgnition, and focuses on product, engineering and design.[102]

In May 2018, Go-Jek announced investing $500 million in its international expansion strategy to Vietnam, Thailand, Singapore and the Philippines, starting with ride-hailing, then further replicating the multiple-service business model in Indonesia.[103] These companies will be run by local founding teams, with Go-Jek providing technological support and expertise.[27] [104]

Products

  • Go-Pay is Indonesia’s fourth biggest e-wallet service, behind the country’s largest lenders; Bank Mandiri’s e-Money, Bank Central Asia’s Flazz, and state-owned telecom firm Telkomsel’s T-Cash.[105] In October 2017 Go-Pay transactions constituted 30 percent of overall e-money transactions in Indonesia.[106] In the same year, theservice was awarded the most proactive Fintech company to support the National Cashless Movement by the capital bank.[107] In May 2017, the service acquired a license from the central bank to use QR Code scans for payments.[108]
  • Go-Ride is the first online motorcycle taxi service in Indonesia.[109] As of May 2018, Go-JEK has more than 1,000,000 fleets.[110]
  • Go-Car expands the ride-hailing service to cars.
  • Go-Food is an instant food delivery service with more than 250,000 merchants[111] all over Indonesia.
  • Go-Food Festival is an offline food-court chain concept from Go-Food, which sells food and beverage from Go-Food merchants. It has opened in major cities in Indonesia such as Surabaya, Makassar, and Palembang and with more than 15 stores across the country, has become the most well networked food-court chain concept in Indonesia.
  • Go-Mart offers app-based grocery shopping at supermarket listed in the Go-Jek app.
  • Go-Shop-Similar to Go-MART, it allows customer to purchase goods from shops that are not listed in Go-Mart.
  • Go-Send is an on-demand courier service to send items and documents with no limits on distance within one delivery zone.
  • Go-Box is similar to Go-Send, for moving large items using pickup trucks, single-axle trucks, and single-axle box trucks.
  • Go-Tix is an app-based entertainment ticket selling service.
  • Go-Med is an app-based medicine delivery service, partnering with HaloDoc on its “Apotik Antar” feature.[112]
  • Go-Massage enables customers to request a personal masseuse
  • Go-Clean is an app-based professional house cleaning service
  • Go-Glam is an app based personal hair stylist, nail care, waxing and facial service
  • Go-Auto is an app-based auto care for maintenance, including car washing, as well as emergency repair.
  • Go-Pulsa is an app-based phone credit top-up service. Go-Pulsa can only be paid by Go-Pay
  • Go-Bills is a service to pay PLN electricity bills, purchase PLN electricity tokens, and pay BPJS insurance premiums.
  • Go-Points is a loyalty program from Go-Jek. Users receive a token for each of transaction and can redeem with rewards through the app.
  • Go-Play & Go-Studio: The company announced plans to venture into online content business with Go-Play[113] as a video streaming provider, and Go-Studio[114] as their production house.
  • Go-Pertamina - an on-demand fuel-delivery service in partnership with Indonesia’s oil major Pertamina, h obrings fuel to users from the nearest Pertamina gas station.[115]

Work culture

Go-JEK ranks number 17 in Fortune’s list of "56 Companies that Changed the World," making it the only company from South East Asia to make the list.[116] Other international recognition includes Top Performer in ASEAN Award 2017,[9] Entrepreneur of The Year award from Ernst & Young,[117] and ]Superior Products and Services Awards 2016.[118]

National recognition includes Top 10 Most Powerful Brand in Indonesia,[119] Top 3 Brand Performer and Top 3 Most Powerful Transportation/Logistic brands,[120] Top 3 Netizen Choice in Online Transportation,[121] The Best Indonesia Mobile App 2015,[122] Best Startup Category Work Life Balance,[123] Indonesia’s Most Admired CEO 2017,[124] and Most Creative in Solving Economic Challenges 2017.[125]

Employees

Go-JEK has more than 3,000 employees, including 210 engineers in its three Jakarta-based headquarters, a data science office in Singapore, and the engineering facility in India.[126] The company announced $500 million investment to expand in South East Asia, starting with ride-hailing service in 4 new countries mid-2018.[127] This expansion will add to their number of existing partners, which as of May 2018 includes a fleet of over 1,000,000 drivers, 125,000 merchants for Go-FOOD, and 30,000 professionals for their Go-MASSAGE, Go-GLAM, Go-CLEAN and Go-AUTO service.

Workplace

The Go-JEK headquarter in Jakarta revamped an old mall into a modern working space with a cinema, a playroom with arcade games and pool tables, as well as office cafes and nap rooms.[128][129][130][131]

Criticism and controversy

Go-JEK’s rapid growth and market dominance in Indonesia has led to prominent media coverage, including criticism primarily stemming from conventional taxi and ojek services.[132][133][134] Go-JEK was briefly banned from operations by the Minister of Transportation, along with other ride-hailing services.[135] The ban was opposed by a huge number of Indonesians, mustering public support with the hashtag #SaveGojek that became a top trending topic on Twitter in Indonesia.[136] The ban was lifted the very same day[137] after President Joko Widodo criticized it, stating the government should not prohibit innovation and asserting the ban would adversely affect the lives of many Indonesians who rely on Go-JEKs services.[138]

In October 2017, the Indonesian Minister of Transportation, Budi Karya Sumadi, applied a new rule for online taxis. PM 108 replaced the previous PM 26, regulating the use of private cars being used for public transportation.[139]

Sponsorships

Go-Jek sponsored the Liga 1 from 2017 to 2018 (in 2017 with Traveloka). Go-Jek also sponsored Persib Bandung from 2019.

See also

References

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