Go-Jek

PT Aplikasi Karya Anak Bangsa
Industry
Founded 2010 (2010)
Founders
  • Nadiem Makarim (CEO & Founder)
  • Michaelangelo Moran (Co-Founder)
  • Kevin Aluwi (Co-Founder)
Headquarters Jakarta, Indonesia
Number of locations
 Indonesia, Vietnam
Key people
  • Andre Soelistyo (President)
  • Ajey Gore (Group CTO)
  • Thomas Husted (Group CFO)
  • Hans P (COO)
  • Aldi Haryopratomo (CEO - GoPay)
  • Ryu Suliawan (CEO - Midtrans)
Website www.go-jek.com

GO-JEK is a technology startup based in Jakarta, Indonesia that specialises in ride-hailing, logistics (finance)|unicorn company]][1], which is also the only company in South East Asia that is included in Fortune's 50 Companies That Changed the World in 2017, and ranked at 17 along with Apple (3rd), Unilever (21st), and Microsoft (25th).[2] The company is valued at about $5 billion as of February, 2018,[3]

The name GO-JEK comes from the term “Ojek” or motorbike taxis[4] commonly found throughout Indonesia.Founded in 2010 with 20 motorbike drivers,[5] its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May 2018.[6][7]GO-JEK app was launched in January 2015,[8] and in less than two years, the app racked up nearly 30 million downloads.[9] GO-JEK ranks in Top 10 most Powerful Brands in Indonesia[10] and Top 3 Most Powerful Transportation/Logistic Brands.[11]

Go-Jek has investment in Pathao, which is a ride hailing company of Bangladesh.[12] [13]In May 2018, it was announced that GO-JEK is investing $500 million towards its international expansion strategy, starting with 4 countries in South East Asia; Vietnam, Thailand, Singapore, and the Philippines.[14][15][16][17] Go-Jek launched operation in Vietnam on 12 September, 2018.[18]

History

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[19] before starting GO-JEK from a tiny call centre with only 20 ojek drivers, who later became recruiters.[20] 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.[21]

As of May 2018, the app offers 18 services,[22] with 2 upcoming new services in the online content business,[23][24] 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.[25]

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[26] in a fundraising round from several investors including Sequoia Capital, Temasek holdings, KKR,[27] Tencent,[28] Meituan-Dianping, Warburg Pincus, Northstar Group,[29] Farallon Capital Management LLC, Capital Group Cos, DST Global, JD.com Inc.[30] and NSI Ventures.[31] By 2018, two of Indonesia’s biggest and highly reputable companies, PT Astra International Tbk,[32] and PT Global Digital Niaga (GDN), a subsidiary of PT Global Digital Prima (GDP) Ventures, Djarum group investment company[33][34] also invested in GO-JEK. The US search firm, Google[35][36] also made direct investment. 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,[37] with no specific time frame.[38]

After closing a round of funding in August 2016 that raised up to $550 million,[39] two of Indonesia’s biggest companies, PT Astra International Tbk,[40] and PT Global Digital Niaga (GDN), a subsidiary of PT Global Digital Prima (GDP) Ventures, Djarum group, invested in GO-JEK.[41] International investors include tech giants such as US search engine Google[42] and China’s Tencent,[43] along with the global investment company Temasek.[44] A survey revealed GO-JEK as the most popular ride-hailing app in Indonesia.[45] The company is valued at about $5 billion as of February, 2018,[46] which exceeds the total market cap of all transportation companies in IDX.[47]

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,[48] and established a development centre in Bangalore, India.[49] They also acquired Leftshift, an Indian mobile application developer,[50] and Pianta, an Indian home healthcare startup.[51]

In 2017, it acquired Loket.com, one of Indonesia’s biggest online ticket booking and event management system company.[52] In the same year, it acquired three large network fintech firm in Indonesia; Kartuku, Midtrans, and Mapan, in order to expand its payments business.[53][54]

Partnerships

In 2016, it announced collaboration with Blue Bird, a major Indonesian taxi company.[55] 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 officially become Indonesia's first online transportation system.[56]

In running their GPS, it partnered with Google Maps.[57] Other partnerships include entertainment; Google Play, MNC Vision, Okevision, TOP TV. Bill Payment; AEON Credit Service & Suzuki Finance Indonesia. And the national electricity provider PLN, as well as the national health insurance BPJS Kesehatan.[58]

Strategy

GO-JEK deviated from the demand-dictates-supply business logic and focused first on growing its fleet, utilizing their existing drivers to do street-fair-style recruitment at basketball stadiums.[59]

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).[60]

As per Temasek Digital's YouTube channel, GO-JEK has contributed an estimated IDR$9.9 trillion (US$732 million) annually to the Indonesian economy[61]

Another research article published 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.[62][63][64]

GO-JEK Centres

Local Big Cities

Bali, Balikpapan, Banda Aceh, Bandar Lampung, Bandung, Banjarmasin, Banyuwangi, Batam, Belitung, Bukittinggi, Cilacap, Cirebon, Garut, Gresik,Jakarta, Jambi, Jember, Karawang, Kediri, Madiun, Madura, Magelang, Makassar, Malang, Manado, Mataram, Medan, Mojokerto, Padang, Palembang, Pasuruan, Pekalongan, Pekanbaru, Pematang Siantar, Pontianak, Probolinggo, Purwakarta, Purwokerto, Salatiga, Samarinda, Semarang, Serang, Sidoarjo, Solo, Sukabumi,Sumedang, Surabaya, Tasikmalaya, Tegal, and Yogyakarta, with more cities to follow in the coming years.[65]

Local Rural Areas

GO-JEK also operates in rural area within Indonesia; Bitung, Tomohon,[66] Gorontalo, Pangkal Pinang, Sabang, Metro, Tanjung Pinang,[67] Tabanan, Gianyar.

International

GO-JEK has an office in Singapore - where it hosts data science and engineering capabilities,[68] and Bangalore, India - which was created with the acquisitions of C42 and CodeIgnition, and focuses on product, engineering and design.[69]

In May 2018, GO-JEK announced investing $500 million in its international expansion strategy. The company will enter Vietnam, Thailand, Singapore and the Philippines, starting with ride-hailing, then further replicating the multiple-service business model offered in Indonesia.[70] These companies will be run by local founding teams, with GO-JEK providing technological support and expertise.[71]

Products

Go-Jek's app-based on-demand services include transportation (GO-RIDE, GO-CAR, GO-BLUEBIRD), logistics (GO-SEND and GO-BOX), food delivery service (GO-FOOD), grocery delivery service (GO-MART), shopping delivery service (GO-SHOP), entertainment ticket selling service (GO-TIX), medicine delivery service (GO-MED), massage service (GO-MASSAGE), beauty service (GO-GLAM), professional cleaning service (GO-CLEAN), automotive solutions (GO-AUTO), digital payment and e-Wallet (GO-PAY), bill payment (GO-BILLS), phone credits top-up (GO-PULSA), and loyalty points (GO-POINTS).[72][73][74]

  • 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.[75] In October 2017 GO-PAY transactions have contributed 30 percent of overall e-money transactions in Indonesia.[76] In the same year, GO-JEK was awarded the most proactive Fintech company to support the National Cashless Movement by the capital bank.[77] In May 2017, GO-PAY acquired license from the central bank to use QR Code scans for payments.[78]
  • GO-RIDE is the first online motorcycle taxi service in Indonesia.[79] As of May 2018, GO-JEK has more than 1,000,000 fleet.[80]
  • GO-CAR expands the ride-hailing service to cars.
  • GO-FOOD is an instant food delivery service with more than 250,000 merchants[81] 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. GO-FOOD FESTIVAL 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, GO-SHOP 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.[82]
  • GO-MASSAGE enables customers to request for a personal masseuse to come over and give them massage treatment.
  • GO-CLEAN is an app-based professional house cleaning service, involving sweeping/mopping/vacuuming, bathroom cleaning to clothes ironing and oven cleaning.
  • 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 for users’ vehicle.
  • 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 will 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[83] as a video streaming provider, and GO-STUDIO[84] as their production house.

People & 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.[85] GO-JEK’s philosophy includes principles such as “create social impact through technology”, “life without limits” and “be fearless”. “The philosophy is not to do everything that we can do. The philosophy is to try everything and then do what we do best. So that means iterate, kill fast, refocus.” Nadiem Makarim, CEO and founder, said in a visit to Silicon Valley.[86]

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.[87] The company announced $500 million investment to expand in South East Asia, starting with ride-hailing service in 4 new countries mid-2018.[88] 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 average age for GO-JEK employees is 27 years old, with Nadiem Makarim, CEO and Founder, only 30 years when GO-JEK acquired its unicorn status. 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.[89][90][91][92]

Founders

Nadiem Makarim

Makarim founded GO-JEK in 2010. He holds degrees from Brown University and Harvard Business School. Prior to founding GO-JEK, he worked at Kartuku as the Chief Innovation Officer, co-founder and Managing Director of Zalora Indonesia, and Associate at McKinsey & Company. In 2017 he won an Entrepreneur of the Year award from Ernst & Young.[93]

Kevin Aluwi

Aluwi is the Chief Information Officer (CIO) and Co-Founder of GO-JEK. Prior to that, he worked at Salem Partners LLC as an Investment Banking Analyst. After coming back to Indonesia, he joined Merah Putih, a start-up incubator company as Head of Business Intelligence. Aluwi graduated from the University of Southern California majoring in Corporate Finance[94]

Michaelangelo Moran

Moran, a co-founder, left the company in 2016 to pursue career in arts & entertainment.[95] He designed the company logo which is still used.

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 service.[96][97][98] Not only that, GO-JEK was once banned to operate by the Minister of Transportation, along with other ride-hailing services.[99] The ban was opposed by Indonesians, mustering public support with the hashtag #SaveGojek that became a top trending topic on Twitter in Indonesia.[100] The very same day, the ban was lifted by President Jokowi.[101]

President Joko Widodo emphasized, we should not prohibit an innovation. In his view, gojek is an application created by young people who have innovative ideas. Thus, do not let the regulation curbs innovation. [102]

In October 2017, Indonesia Minister of Transportation, Budi Karya Sumadi applied a new rule for online taxis, PM 108 replacing the previous PM 26, regulating private cars being used for public transportation.[103]

Recognition

GO-JEK sits at number 17 in Fortune’s list of 50 companies that Change the World, along with world-class companies such as Microsoft, Apple, and Unilever.[104] Other international recognition includes Top Performer in ASEAN Award 2017,[105] Entrepreneur of The Year award from Ernst & Young,[106] and ]Superior Products and Services Awards 2016.[107]

National recognition includes Top 10 Most Powerful Brand in Indonesia,[108] Top 3 Brand Performer and Top 3 Most Powerful Transportation/Logistic brands,[109] Top 3 Netizen Choice in Online Transportation,[110] The Best Indonesia Mobile App 2015,[111] Best Startup Category Work Life Balance,[112] Indonesia’s Most Admired CEO 2017,[113] and Most Creative in Solving Economic Challenges 2017.[114]

See also

References

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