GO-JEK (PT. Aplikasi Karya Anak Bangsa) is an Indonesian-owned and run technology startup that specialises in ride-hailing, logistics and digital payments. It is Indonesia's first "unicorn" startup, and the only company in South East Asia that made it into Fortune's 2017 list of "50 Companies That Changed the World," ranking at number 17 alongside Apple (3rd), Unilever (21st), and Microsoft (25th).
Founded in 2010 with 20 motorbike drivers, its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May 2018.
After closing a round of funding in August 2016 that raised up to $550 million, two of Indonesia's biggest companies, PT Astra International Tbk, and PT Global Digital Niaga (GDN), a subsidiary of PT Global Digital Prima (GDP) Ventures, Djarum group, invested in GO-JEK. International investors include tech giants such as US search engine Google and China's Tencent, along with the global investment company Temasek. A survey revealed GO-JEK as the most popular ride-hailing app in Indonesia. The company is valued at about $5 billion as of February, 2018, which exceeds the total market cap of all transportation companies in IDX.
The GO-JEK app was launched in January 2015, and in less than two years, the app racked up nearly 30 million downloads. As of May 2018, the app offers 18 services, with 2 upcoming new services in the online content business, 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.
Its 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).
The name GO-JEK comes from the term "Ojek" or motorbike taxis commonly found throughout Indonesia. GO-JEK ranks in Top 10 most Powerful Brands in Indonesia and Top 3 Most Powerful Transportation/Logistic Brands, despite receiving criticism involving disrupting the traditional transportation system - even once banned from operating by the Minister of Transportation, though the ban was lifted on the same day by President Jokowi.
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.
Video Go-Jek
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 before starting GO-JEK from a tiny call centre with only 20 ojek drivers, who later became recruiters. 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.
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 in a fundraising round from several investors including Sequoia Capital, Temasek holdings, KKR, Tencent, Meituan-Dianping, Warburg Pincus, Northstar Group, Farallon Capital Management LLC, Capital Group Cos, DST Global, JD.com Inc. and NSI Ventures. By 2018, two of Indonesia's biggest and highly reputable companies, PT Astra International Tbk, and PT Global Digital Niaga (GDN), a subsidiary of PT Global Digital Prima (GDP) Ventures, Djarum group investment company also invested in GO-JEK. The US search firm, Google 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, with no specific time frame.
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, and established a development centre in Bangalore, India. They also acquired Leftshift, an Indian mobile application developer, and Pianta, an Indian home healthcare startup.
In 2017, it acquired Loket.com, one of Indonesia's biggest online ticket booking and event management system company. In the same year, it acquired three large network fintech firm in Indonesia; Kartuku, Midtrans, and Mapan, in order to expand its payments business.
Partnerships
In 2016, it announced collaboration with Blue Bird, a major Indonesian taxi company. 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.
In running their GPS, it partnered with Google Maps. 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.
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.
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).
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.
Maps Go-Jek
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.
Local Rural Areas
GO-JEK also operates in rural area within Indonesia; Bitung, Tomohon, Gorontalo, Pangkal Pinang, Sabang, Metro, Tanjung Pinang, Tabanan, Gianyar.
International
GO-JEK has an office in Singapore - where it hosts data science and engineering capabilities, and Bangalore, India - which was created with the acquisitions of C42 and CodeIgnition, and focuses on product, engineering and design.
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. These companies will be run by local founding teams, with GO-JEK providing technological support and expertise.
Products
GO-PAY
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.
In October 2017 GO-PAY transactions have contributed 30 percent of overall e-money transactions in Indonesia. In the same year, GO-JEK was awarded the most proactive Fintech company to support the National Cashless Movement by the capital bank. In May 2017, GO-PAY acquired license from the central bank to use QR Code scans for payments.
GO-RIDE
GO-RIDE is the first online motorcycle taxi service in Indonesia. As of May 2018, GO-JEK has more than 1,000,000 fleet.
GO-CAR
GO-CAR expands the ride-hailing service to cars.
GO-FOOD
GO-FOOD is an instant food delivery service with more than 125,000 merchants all over Indonesia.
GO-MART
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
GO-SEND is an on-demand courier service to send items and documents with no limits on distance within one delivery zone.
GO-BOX
GO-BOX is similar to GO-SEND, for moving large items using pickup trucks, single-axle trucks, and single-axle box trucks.
GO-TIX
GO-TIX is an app-based entertainment ticket selling service.
GO-MED
GO-MED is an app-based medicine delivery service, partnering with HALODOC on its "Apotik Antar" feature.
GO-MASSAGE
GO-MASSAGE enables customers to request for a personal masseuse to come over and give them massage treatment.
GO-CLEAN
GO-CLEAN is an app-based professional house cleaning service, involving sweeping/mopping/vacuuming, bathroom cleaning to clothes ironing and oven cleaning.
GO-GLAM
GO-GLAM is an app based personal hair stylist, nail care, waxing and facial service
GO-AUTO
GO-AUTO is an app-based auto care for maintenance, including car washing, as well as emergency repair for users' vehicle.
GO-PULSA
GO-PULSA is an app-based phone credit top-up service. GO-PULSA can only be paid by GO-PAY.
GO-BILLS
GO-PAY introduces GO-BILLS, a service to pay PLN electricity bills, purchase PLN electricity tokens, and pay BPJS insurance premiums.
GO-POINTS
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 as a video streaming provider, and GO-STUDIO 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. 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.
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. The company announced $500 million investment to expand in South East Asia, starting with ride-hailing service in 4 new countries mid-2018. 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 movie theatre, a playroom with arcade games and pool tables, as well as office cafes and nap rooms.
Founders
Nadiem Makarim
Nadiem is an Indonesian tech entrepreneur who 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.
Kevin Aluwi
Kevin 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. Kevin graduated from the University of Southern California majoring in Corporate Finance
Michaelangelo Moran
One of its co-founders, Mikey, left the company in 2016 to pursue career in arts & entertainment. Mikey built the company's brand team and designed the company logo still used today.
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. Not only that, GO-JEK was once banned to operate by the Minister of Transportation, along with other ride-hailing services. The ban was opposed by Indonesians, mustering public support with the hashtag #SaveGojek that became a top trending topic on Twitter in Indonesia. The very same day, the ban was lifted by President Jokowi.
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.
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. Other international recognition includes Top Performer in ASEAN Award 2017, Entrepreneur of The Year award from Ernst & Young, and ]Superior Products and Services Awards 2016.
National recognition includes Top 10 Most Powerful Brand in Indonesia, Top 3 Brand Performer and Top 3 Most Powerful Transportation/Logistic brands, Top 3 Netizen Choice in Online Transportation, The Best Indonesia Mobile App 2015, Best Startup Category Work Life Balance, Indonesia's Most Admired CEO 2017, and Most Creative in Solving Economic Challenges 2017.
See also
- List of unicorn startup companies
References
External links
- Go-jek.com Site Info on Alexa Internet
Source of the article : Wikipedia
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