Gojek

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PT Aplikasi Karya Anak Bangsa
Gojek
Formerly
PT GO-JEK Indonesia
Industry
Founded12 October 2010 (2010-10-12)
Founders
Headquarters
Number of locations
Indonesia, Vietnam, Thailand, Singapore, Philippines
Key people
Number of employees
3,000 (2019)
Websitegojek.com

PT Aplikasi Karya Anak Bangsa[a], doing business as Gojek (stylized in lower case as gojek), is Southeast Asia's leading on-demand multi-service platform and digital payment technology group. Gojek was first established in Indonesia in 2010 as a call center to connect consumers to courier delivery and two-wheeled ride-hailing services. Gojek launches it application on 2015 with only three services: GoRide, GoSend, and GoMart. Today, Gojek has transformed into a Super App, providing more than 20 services.[1]

Gojek operates in Indonesia, Vietnam, Singapore, Thailand, and Philippines (through the acquisition of Coins.ph).[2][3][4][5][6] Gojek is the first Indonesian unicorn company,[7] and also the first "decacorn" company in Indonesia.[8] It is the only company in Southeast Asia that is included in Fortune's 50 Companies That Changed the World in 2017 and 2019, ranked at 17 and 11 respectively.[9][10] As of February 2019, the estimated value of the company is about US$10 billion.[11]

Gojek has won financial backing from investors including Astra International, blibli.com, Google, Mitsubishi, Sequoia, Northstar, Singapore's sovereign wealth fund Temasek Holdings, KKR, Warburg Pincus, Visa, Parallon, SCB, Chinese internet giant Tencent, JD.com, meituan.com, Capital Group, among others.[12]

History[edit]

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

The name Gojek comes from the term “Ojek” or motorbike taxis[13] commonly found throughout Indonesia. Founded in 2010 with 20 motorbike drivers,[14] its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May 2018.[15][16] Gojek app was launched in January 2015,[17] and in less than two years, the app racked up nearly 30 million downloads.[18] Gojek has partnered with Singapore's biggest bank DBS.[19]

Gojek 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[20] before starting Gojek from a tiny call centre with only 20 ojek drivers, who later became recruiters.[21] 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. Gojek 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.[22]. Gojek was also co-founded by long time friend Michaelangelo Moran, of which Michaelangelo became the Brand Director who is also known for designing the company's first iconic logo.

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 Gojek'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] Gojek recruited 100 new graduates in engineering domain from India in 2017.[27]

Financing[edit]

Gojek'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 Gojek'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 Gojek.[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 Gojek 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 Gojek 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[edit]

The company's rapid growth triggered a chain of acquisitions and partnerships. In 2016, Gojek 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[edit]

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 Gojek for the delivery of products sold on Gojek across 17,000 Indonesian Islands.[52]

In August 2019, the Wall Street Journal reported that Gojek had held "preliminary talks" with Amazon on a partnership that would involve the retail giant making a sizable investment in Gojek to tap into the company's delivery infrastructure in order to expand Amazon's market reach in Indonesia.[53]

Impact[edit]

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).[54]

As per Temasek Digital's YouTube channel, Gojek has contributed an estimated Rp 9.9 trillion (US$732 million) annually to the Indonesian economy[55]

Another research article reported that Gojek 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.[56][57][58][59]

Rebranding[edit]

On 22 July 2019, Gojek unveiled a new logo. Its new icon, which nicknamed as "Solv", symbolized Gojek's transformation from being a ride-hailing service to become a super app that provides a variety of smart ways to eliminate hassles.

Gojek centres[edit]

Gojek operates in the many large and medium size Indonesian cities,[60] and also in rural area within Indonesia;

Gojek launched its ride-hailing service in Singapore on 10 January 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".[61] In February 2019, Gojek Singapore appointed management consultant and mountain climber Lien Choong Luen as the GM of its Singapore operations.

International[edit]

Gojek has an office in Singapore, with data science and engineering capabilities,[62] and Bangalore, India, which was created with the acquisitions of C42 and CodeIgnition, and focuses on product, engineering and design.[63]

In May 2018, Gojek 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.[64] These companies will be run by local founding teams, with Gojek providing technological support and expertise.[27][65]

Products[edit]

  • 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 telecom firm Telkomsel’s T-Cash.[66] In October 2017 Go-Pay transactions constituted 30 percent of overall e-money transactions in Indonesia.[67] In the same year, theservice was awarded the most proactive Fintech company to support the National Cashless Movement by the capital bank.[68] In May 2017, the service acquired a license from the central bank to use QR Code scans for payments.[69]
  • Go-Ride is the first online motorcycle taxi service in Indonesia.[70] As of May 2018, Gojek has more than 1,000,000 fleets.[71]
  • Go-Car expands the ride-hailing service to cars.
  • Go-Food is an instant food delivery service with more than 250,000 merchants[72] 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 Gojek 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.[73]
  • 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 Gojek. 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[74] as a video streaming provider, and Go-Studio[75] as their production house.
  • Go-Pertamina - an on-demand fuel-delivery service in partnership with Indonesia's oil major Pertamina, brings fuel to users from the nearest Pertamina gas station.[76]

Work culture[edit]

Gojek 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.[77] Other international recognition includes Top Performer in ASEAN Award 2017,[78] Entrepreneur of The Year award from Ernst & Young,[79] and ]Superior Products and Services Awards 2016.[80]

National recognition includes Top 10 Most Powerful Brand in Indonesia,[81] Top 3 Brand Performer and Top 3 Most Powerful Transportation/Logistic brands,[82] Top 3 Netizen Choice in Online Transportation,[83] The Best Indonesia Mobile App 2015,[84] Best Startup Category Work Life Balance,[85] Indonesia's Most Admired CEO 2017,[86] and Most Creative in Solving Economic Challenges 2017.[87]

Employees[edit]

Gojek has more than 3,000 employees, including 210 engineers in its three Jakarta-based headquarters, a data science office in Singapore, and an engineering facility in India.[88] The company announced $500 million investment to expand in South East Asia, starting with ride-hailing service in 4 new countries mid-2018.[89] 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[edit]

The Gojek 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.[90][91][92][93]

Criticism and controversy[edit]

Gojek's rapid growth and market dominance in Indonesia has led to prominent media coverage, including criticism primarily stemming from conventional taxi and ojek services.[94][95][96] Go-Jek was briefly banned from operations by the Minister of Transportation, along with other ride-hailing services.[97] 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.[98] The ban was lifted the very same day[99] 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 Gojek's services.[100]

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.[101]

Sponsorships[edit]

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

See also[edit]

References[edit]

  1. ^ lit. Application Made by the Youth of the Nation Stock Company
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External links[edit]