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PITCH
Indonesia’s first unicorn, Go-Jek has created the indispensable app for booking various on-demand services, delivered using speedy motorcycle taxis to beat the terrible local traffic.
WHY?

Terrible traffic

In Jakarta alone, traffic congestions caused IDR 65 trillion in annual productivity loss.

Unpredictable pricing

With traditional motorcycle taxi drivers, passengers need to haggle for a price before each journey.

Safety concerns

Traditional motorcycle taxi drivers are untrained and aren’t background-checked.

MARKET

60 million

Combined population of cities where Go-Jek operates

Having started in the Greater Jakarta area, Go-Jek has expanded to 10 cities across five islands, as of September 2016.

PRODUCT
By using a motorcycle taxi network as its backbone, Go-Jek is a one-stop app for everything on-demand – transport, courier, food delivery, even massage services. Drivers are rated by users, prices are fixed, and insurance is included. By cash or its e-wallet, Go-Pay.
By using a motorcycle taxi network as its backbone, Go-Jek is a one-stop app for everything on-demand – transport, courier, food delivery, even massage services. Drivers are rated by users, prices are fixed, and insurance is included. By cash or its e-wallet, Go-Pay.
BUSINESS MODEL
Leveraging its motorcycle-taxi network as its logistics backbone, Go-Jek can easily “stack on” many on-demand services – powering its rapid expansion into higher-margin vertical markets. At the top of the chain is financial services, especially for the millions of unbanked Indonesians, which Go-Jek can provide via its e-wallet, challenging traditional banks.

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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:

  1. GO-RIDE: motorcycle taxi booking service

  2. GO-CAR: private car booking service

  3. GO-FOOD: food delivery service

  4. GO-MART: grocery and general shopping delivery service

  5. GO-SEND: courier delivery service

  6. GO-BOX: large goods delivery service

  7. GO-MASSAGE: masseuse booking service

  8. GO-CLEAN: professional cleaner booking service

  9. GO-GLAM: beautician booking service

  10. GO-TIX: ticket booking service

  11. GO-BUSWAY: bus system integration service; bus schedule updates

  12. 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.

TIMELINE

  • Launch
  • Growth
  • Recent Developments
  • Future Plans
  • 2011 - Launched Go-Jek call center with 20 motorcycle taxi drivers, won US$10,000 in a competition.

    Read in detail:

    The launch

    February, launched Go-Jek call center with 20 motorcycle taxi drivers.

    • Nadiem Makarim and Michaelangelo Moran created PT. Go-Jek Indonesia, a social enterprise to increase motorcycle taxi drivers’ daily income.
    • By setting up a call center to connect drivers with passengers, the enterprise was able to get more business for these drivers, who would normally spend hours waiting for customers at a motorcycle-taxi post.
    Expansion
    July, won US$10,000 in a competition through the American State Department's Global Entrepreneurship Program.
  • 2015 - Transformed into a technology startup, gained VC funding, rapid expansion.

    Read in detail:

    Products and services

    January, launched Go-Jek app (Android and iOS) with 800 drivers and financial backing from NSI Ventures – the turning point in its business.

    • Users in the Greater Jakarta metropolitan area could order a motorcycle taxi service via the app for transportation, courier or shopping items below IDR 1 million.
    • Accepted cash payments, Go-Jek credits or a corporate pin (for staff of cooperating companies). Users could buy Go-Jek credits through bank transfer, or receive Go-Jek credits by sharing their Go-Jek promotion code with friends.
    • “Timing is important because if you launch these things too early – before people have the right connectivity, the right phones – you need to be sufficiently confident that it can scale up,” said Shane Chesson, co-founder of NSI Ventures.

    April, launched food delivery service feature, Go-Food; expanded to Bandung, the capital city of West Java; reached 4,000 drivers in its network.

    • Go-Food covering about 15,000 street food vendors and fancy restaurants in the Greater Jakarta metropolitan area. September, unveiled Go-Mart across the Greater Jakarta metropolitan area; partnered with Pertamina.
    • Go-Mart lets users shop from over 20 types of stores, including minimart, supermarket, office supplies, optical & eyewear, even pet shops. Purchases are delivered for IDR 10,000.
    • Also entered a partnership with Indonesia state energy firm PT. Pertamina to deliver fuel, gas and automotive lubricants.

    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.

    • Users can book a motorcycle taxi to take them to and from the nearest bus stop. The app also provides real-time bus schedules.
    • Part of Jakarta’s Smart City project.
    Expansion

    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.

    Fundings
    October, received funding from Sequoia Capital (India).
    Challenges

    December, temporarily banned by the Ministry of Transportation.

    • Go-Jek, along with other ride-hailing applications, was banned by Indonesia’s transport ministry on 17 December 2015. This provoked an online outcry and within hours, #SaveGojek was the top trending topic on Twitter in Indonesia. The ban was rebuked by Indonesia’s President Joko “Jokowi” Widodo on 18 December 2015, and reversed.
  • 2016 - Created e-wallet, boosted tech team, became a unicorn.

    Read in detail:

    Products and services

    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.

    • Rebranded its cashless payment system from Go-Jek credit to Go-Pay, an e-wallet. Users can top up their Go-Jek credit using ATMs and online banking. The company partnered with three of Indonesia’s biggest banks – Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI), and the Mandiri Bank – for this feature.
    • Made major changes to the Go-Jek app and rolled out a new service, the Go-Car, which allows users to book private car drivers.

    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.

    Expansion

    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.

    • Chosen by KPU due to the number of Jakarta residents using Go-Jek.
    Fundings

    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.

    • Existing shareholders, such as NSI Ventures, Sequoia Capital (India) and DST Global, and other international investors, including Farallon Capital Management and Capital Group Private Markets, also participated.
    M&As

    February, acquired two Indian tech startups and established an R&D center in Bangalore.

    • Following outages in its overloaded system, Go-Jek bought over Bangalore-based C42 Engineering and Delhi-based CodeIgnition to beef up its technology.
    • Set to hire 100 engineers, programmers and data scientists in 6–12 months.

    September, acquired Indian healthcare marketplace Pianta to improve its engineering team.

    October, acquired e-payment company PonselPay.

    • Aside from PonselPay, only 20 companies are licensed to create e-money, including big banks such as BCA and Mandiri.

    November, acquired India-based app development company LeftShift Technologies.

    • LeftShift’s 42 employees will relocate to Bangalore and join Go-Jek’s engineering team there.
    Key personnel
    October, co-founder Michaelangelo Moran left Go-Jek to pursue his other interests.
    Challenges

    January, bug discovered in the Go-Jek application

    • Programmer Yohanes Nugroho reported he had discovered a bug in the Go-Jek application that threatened users’ privacy, exposing their names, contact information, and order history.

    March, anti-ride-hailing app protest turned violent.

    • A protest in Jakarta against online ride-hailing apps such as Go-Jek turned violent as taxi and other public transportation drivers clashed with drivers affiliated with ride-hailing apps.

    July, investor presentation leaked; several Go-Pay user accounts were hacked.

    • Included completed bookings and gross booking fare values since 2015.
    • The hack did not affect Go-Jek’s payment system as a whole.
  • Recent Developments

    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.


  • Future Plans

    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.

Updated: 10/2017

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