In Jakarta alone, traffic congestions caused IDR 65 trillion in annual productivity loss.
With traditional motorcycle taxi drivers, passengers need to haggle for a price before each journey.
Traditional motorcycle taxi drivers are untrained and aren’t background-checked.
Having started in the Greater Jakarta area, Go-Jek has expanded to 10 cities across five islands, as of September 2016.
Go-Jek started out as a call center connecting passengers with motorcycle-taxi drivers, known locally as ojek. The company provided training and uniforms to the drivers and set a standard pricing. These, together with having customers rate its drivers, helped build Go-Jek’s image of reliability and safety, hence gaining riders’ trust and boosting its popularity.
By leveraging the motorcycle taxi network it has built, Go-Jek was then able to easily add on – or in its founder Nadiem Makarim’s words, “stack on” – different services/businesses to this logistics infrastructure, enabling its rapid vertical expansion into many markets:
GO-RIDE: motorcycle taxi booking service
GO-CAR: private car booking service
GO-FOOD: food delivery service
GO-MART: grocery and general shopping delivery service
GO-SEND: courier delivery service
GO-BOX: large goods delivery service
GO-MASSAGE: masseuse booking service
GO-CLEAN: professional cleaner booking service
GO-GLAM: beautician booking service
GO-TIX: ticket booking service
GO-BUSWAY: bus system integration service; bus schedule updates
GO-AUTO: auto mechanic booking service
Go-Jek is eyeing a slice of the largest and most profitable market – financial services. For starters, through its e-wallet Go-Pay, customers could soon bypass banks and use Go-Pay to shop for everything they need. The e-wallet can be easily topped up through Go-Jek drivers.
The founders’ vision includes extending financial services to the estimated 110 million Indonesians who don’t have a bank account.
The Go-Jek mobile app, released four years after the company’s inception, allows payments to be made by Go-Jek credits, on top of cash. Since it has evolved into Go-Pay, an e-wallet.
Go-Jek has a different pricing model for each of its services, but they are all fixed during booking. For its ride-hailing services, Go-Ride and Go-Car, the company takes 20% of the total fare for each transaction. For example, if a journey costs a Go-Jek user IDR 100,000, then PT. Go-Jek Indonesia will receive IDR 20,000 whereas the driver gets to keep IDR 80,000.
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February, launched Go-Jek call center with 20 motorcycle taxi drivers.
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January, launched Go-Jek app (Android and iOS) with 800 drivers and financial backing from NSI Ventures – the turning point in its business.
April, launched food delivery service feature, Go-Food; expanded to Bandung, the capital city of West Java; reached 4,000 drivers in its network.
October, launched Go-Box, a large goods delivery service; Go-Glam, a beautician booking service; Go-Massage, a masseuse booking service; and Go-Clean, a professional cleaner booking service; Go-Busway, a bus system integration service.
March, expanded to Bali island for local tourists.
April, reached a network of 3,000 drivers in Greater Jakarta area, 500 in Bali and 500 in Bandung. June, expanded to Surabaya, the capital city of East Java and the second-biggest city in Indonesia.
July, network reached 10,000 drivers. August, expanded to Makassar, the capital city of South Sulawesi.
November, expanded to five new cities: Yogyakarta, Semarang, Medan, Palembang and Balikpapan. December, reached 4 million downloads.
December, temporarily banned by the Ministry of Transportation.
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January, partnered with Japanese instant messaging app Line, allows user to book a motorcycle-taxi via instant messaging.
April, upgraded to e-wallet Go-Pay; released a major application update and new service, Go-Car.
May, partnered with Indonesia’s largest taxi operator, Blue Bird, to allow users to hail Blue Bird taxis via the Go-Jek app.
June, insurance company PT. Asuransi Allianz Life Indonesia launched an insurance program for Go-Jek motorcycle taxi drivers and their families.
September, tested Go-Med, a medicine delivery service in partnership with pharmacy Apotik Antar. - For delivery of OTC medicines, vitamins and prescription drugs. - Users can upload photos of their prescriptions. October, rolled out Go-Auto, an on-demand auto mechanic service. November, introduced Go-Pulsa, a mobile credit purchasing feature in Go-Pay. Allows users to top up their prepaid phone credit using their Go-Pay balance.
March, reached 11 million downloads; more than 200,000 drivers in their network.
May, became a logistics partner of online marketplace startup Tokopedia. September, became a logistics partner of online marketplace startup BukaLapak.
November, supported the Jakarta’s General Election Commissions (KPU) by displaying reminders to vote for the next Jakarta Governor on 15 February 2017.
August, raised more than US$550 million in a new round of funding led by KKR & Co. and Warburg Pincus LLC, the largest ever for an Indonesian technology startup.
February, acquired two Indian tech startups and established an R&D center in Bangalore.
September, acquired Indian healthcare marketplace Pianta to improve its engineering team.
October, acquired e-payment company PonselPay.
November, acquired India-based app development company LeftShift Technologies.
January, bug discovered in the Go-Jek application
March, anti-ride-hailing app protest turned violent.
July, investor presentation leaked; several Go-Pay user accounts were hacked.
Go-Jek offers 12 on-demand services, and has more than 25 million downloads and a network of over 240,000 drivers across 10 cities.
Go-Massage is its most rapidly expanding business, with about 30–40% monthly growth rate.
Go-Pay is posting 20% weekly growth but most Go-Jek customers still prefer to pay cash.
Currently seeking to raise more capital from existing and new investors to kickstart regional expansion, the Indonesian tech unicorn is reported to have secured US$100–150 million from China’s tech giant Tencent Holdings Ltd.
Continue to add new high-margin services to diversify its portfolio, building an everything-on-demand empire.
Customers can top up their Go-Pay credit through Go-Jek drivers, and won’t need a bank account to use Go-Pay.
Expand into financial services for micro businesses and Indonesians who lack access to banking services, including personal loans for its drivers.
More partnerships with financial institutions.
Officially launch Go-Med.
Roll out service that allows Bluebird taxi bookings via the Go-Jek app.
Valued at over US$2 billion for the latest funding round, Go-Jek aims to build up a US$1-billion war chest to protect its home turf and to compete regionally with key players like the ubiquitous Uber and Southeast Asia’s Grab that is already operating in seven countries including Indonesia.
Co-founder and CEO Nadiem Makarim stated that Go-Jek’s mobile digital payment service would be vital to its push into new markets. Potential regional targets with a large pool of unbanked customers include the Philippines, Vietnam and Thailand. The ride-hailing app would open doors for other Go-Jek products, such as its e-wallet Go-Pay that can also offer various financial services to a large number of people with little access to banking.