JAKARTA (TheInsiderStories) - Local ride-hailing operator, PT GO-JEK Indonesia is rumored to be seeking funding of US$1 billion for business expansion. Last year, Go-Jek has closed a $550m funding round from a consortium of global investment firms US Private equity firm KKR & Co. and Warburg Pincus LLC.
GO-JEK is estimated to need fresh funds of $1.2 billion to expand its business. Recently, GO-JEK has officially set up mutual benefit partnership with taxi service provider PT Blue Bird Tbk. (IDX:BIRD). The partnership is seen as a move to ease tension between online and conventional transportation services.
The partnership was marked by the launch of the GO-Blue Bird, following a successful trial for around one month. For the initial stage, the service is only available in five cities in Indonesia, including the Greater Jakarta area, Bandung, Semarang and Medan.
CEO of GO-JEK Indonesia, Nadiem Makarim said the GO-JEK costumers can already start ordering Blue Bird taxi through the GO-Blue Bird application. He also stated that the service is different from GO-JEK existing service, GO-CAR.
For GO-JEK, Nadiem said, the partnership is important to meet the customers need who prefer to ride Blue Bird than private car which is become partner of GO-JEK. In the long term, the partnership could also boost demand for transportation services through GO-JEK application.
As for Blue Bird, Managing Director of PT Blue Bird Tbk. Adrianto Djokosoetono, said the cooperation will add multi-channel access for Blue Bird customers. Moreover, GO-JEK is known to have a large customer base. During the trial last month, the demand of Blue Bird taxi rose sharply.
Adrianto said this partnership is not supposed to eliminate the existing application which is owned by Blue Bird, called My Blue Bird. Previously, the company also has various channels for the taxi services such as phone orders and pool bases in malls, hotels, airports, and stop on the road. However, in GO-Blue Bird, the rate applies the Blue Bird system.
GO-JEK cooperation with Blue Bird adds the list of collaboration between online and conventional taxis. Previously, the other applications provider, UBER also set up partnership with PT Express Transindo Utama (IDX: TAXI). Nadiem said he just want focus to work on this project with the Blue Bird.
Founded in 2010, Go-Jek has since increased its services to food deliveries, cleaning and even massages and now has a network of more than 200,000 motorbike taxi drivers across the country. Currently, GO-JEK customers who pay with the GO-PAY service receive discount of 30% of normal rates. (*)