Indonesian passenger transport giant Go-Jek is about to enter the markets of Singapore, Thailand, Vietnam and the Philippines “in the subsequent few months”.
In a press release on Thursday (May 24), the corporate said it could invest $500 million (S$671 million) in its international expansion strategy. It said the expansion would start with passenger transport, but the final word goal was to “recreate the multi-service business model that has made the corporate a market leader in Indonesia.”
Go-Jek added that it’s currently working with regulators and other stakeholders across the region to pave the best way for brand spanking new activities.
“The companies will be led by local founding teams, and Go-Jek will provide technological support and expertise accumulated over the past three years as Indonesia’s most disruptive technology company,” the press release said.
“Local businesses will define their own brands and identities to ensure good traction in any new market.”
Go-Jek’s statement on Thursday confirmed reports that emerged last month concerning the Indonesian giant’s plan to move passengers abroad.
The popularity of the motorcycle taxi app, founded eight years ago in Indonesia’s capital Jakarta, has enabled it to quickly expand outside town and expand its business to incorporate a cashless payments app and even lifestyle services.
In a press release on Thursday, the corporate said the international expansion comes after “many months of detailed planning and market research,” following its latest round of fundraising to expand its presence in Southeast Asia, which attracted investors corresponding to Astra International, Google, JD. COM, Meituan, Tencent and Temasek.
Expansion abroad had been anticipated “for a very long time,” said its president Andre Soelistyo, but he desired to be certain the plan can be initiated when he was within the “strongest possible position” to accomplish that.
“As a result of our recent financing, a significant number of strategic investors have joined our company, both from Indonesia and around the world. We are therefore confident that we have the support needed to transform one of the most incredible growth stories in the world from an Indonesian phenomenon to a regional phenomenon,” he added.
A play on the Indonesian word for motorcycle taxis, as Seasia previously reported, should Go-Jek determine to enterprise into Singapore, it’s unlikely to supply its services on two wheels as motorcycles can’t be used for point-to-point transportation, unlike for taxis and personal rental cars.
For expansion, the corporate said it could seek local partners with interests and expertise in each of the brand new markets to make sure the latest operations profit from the deepest and diversified market knowledge possible.
“Our role will be to act as advisors, giving new companies the benefit of our operational and development experience so that they can take on the spirit with which we created Go-Jek and find the best way to achieve this locally,” said chief executive officer and founder Nadiem Makarim.
Following Uber’s departure on May 7 and Grab’s subsequent moves in light of its newfound dominance after acquiring rivals’ operations in Southeast Asia, Go-Jek hopes to win over riders and drivers who’re feeling exhausted.
Makarim said: “Consumers are happiest after they have a alternative, and currently people in Vietnam, Thailand, Singapore and the Philippines don’t feel they’re getting enough with regards to passenger transport.
“We hope that as we enter new markets, we will quickly become the go-to lifestyle app for everyone. This is our pursuit. In the meantime, we hope that our presence will provide markets with the welcome competition they need to thrive.”
Meanwhile, while Grab’s acquisition of Uber continues to be under review by the Competition and Consumer Commission of Singapore (CCCS), its own ride-sharing app Ryde Technologies and India’s Jugnoo have entered the passenger transport market by offering fixed-price private hire automobile service RydeX and the Jugnoo app.
Source: TODAY Online | Vulcan Post
