JAKARTA (TheInsiderStories) – Indonesia’s on-demand services and ride-hailing company Go-Jek announced that it will invest about US$500 million to enter into four new markets Singapore, Vietnam, Thailand and the Philippines, said the company on May 23. The operator expect to realize the plans in the next four months.
It said, the company aiming to replicate its other services offered in Indonesia to its new markets. Currently, one of the country’s unicorn, working with regulators across the region to pave the way for the new operations.
Go-Jek CEO and founder Nadiem Makarim, said: “People in Vietnam, Thailand, Singapore and the Philippines don’t feel that they’re getting enough when it comes to ride-hailing. We hope that as we arrive in new markets, we will quickly become everyone’s go-to lifestyle app. That is our aspiration. In the meantime, we hope our presence will provide the welcome competition markets need to thrive.”
Last month, Allianz X, the digital investment arm of the Allianz Group, has announced a $35 million investment in Go-Jek. This investment is Allianz X’s first invested in a Southeast Asian-headquartered company and it made Allianz Group to become Go-jeK’s sole international insurance shareholder.
Previously, the company has raised $1.5 billion in venture capital funding from investors included Google and Blackrock. After the deals the value of Go-Jek at around $5 billion now.
In February, PT Astra International Tbk (IDX: ASII), the Indonesian conglomerate has invest $150 million in Go-Jek. Meanwhile, internet giant company, Google has confirmed its plan to invest in Go-Jek, aiming to support and participate in Indonesia’s growth.
According to some reports earlier this month, Google which was made alongside China’s Meituan-Dianping and Singaporean sovereign fund Temasek Holdings. The trio were part of a final tranche of a $1.2 billion round that Go-Jek began negotiating on last April, with commitments from the likes of Tencent and JD.com in China.
Go-Jek continues to strengthen its grip in the country’s electronic payment system by adding its new Go-Bills service on November, 2017. Makarim said Go-Bills is a platform that can be used for numerous bill payments and the platform can be accessed through Go-Pay.
He said the new platform will expand the existing ecosystem in Go-Pay services in providing cashless payments, in line with government’s effort to promote a cashless society.
Launched in April 2016, Go-Pay grew fast. The company is currently preparing infrastructure, including applications for customers, that will make it easier for them to carry out transactions with various merchant partners using Go-Pay, and targets Go-Pay to fully operate independently from Go-Jek.
GoJek currently is working with more than 300,000 driver-partners and 100,000 SMEs. Go-Jek was established in 2010 as an on-demand transportation platform for motorbikes.
However, Go-Jek’s portfolio of services has been broadly expanded since then to include grocery delivery, courier services, home cleaning, massages and food services.
Headquartered in Jakarta, GO-JEK started as a ride-hailing app in 2010 and evolved into an on-demand mobile platform that provides a wide range of services including logistics, transportation, e-payments, and food delivery, among others.
According to the statement GO-JEK connects its users to one million registered drivers on the app who are serving customers in more than 50 cities in Indonesia. The app also connects users to more than 150,000 food vendors, and more than 30,000 other services.
Until February 2018, GO-JEK app has been downloaded by more than 77 million times.
GO-JEK now operates in 50 cities in the Indonesia. With a population of more than 250 million, Indonesia is the world’s fourth-most-populous nation and the largest economy in Southeast Asia.
Indonesia is eyeing e-commerce to become a market worth an estimated $130 billion by 2020 from a current $8 billion.