JAKARTA (TheInsiderStories) – GO-JEK, an Indonesian ride-hailing provider has confirmed that it is to invest US$500 million in its international expansion strategy. The operator expect to realize the plans in the next few months.
The company will enter Vietnam, Thailand, Singapore and the Philippines starting with ride-hailing but ultimately aiming to replicate the multiple-service business model that has made it the market leader in Indonesia.
As said in a press statement on June 23, GO-JEK is currently working with regulators and other stakeholders across the region to pave the way for the new operations. The companies will be run by local founding teams, with GO-JEK providing technological support and expertise gathered over the past three years.
The local companies will determine their own brands and identities to ensure good traction in each new market. The international expansion follows many months of detailed planning and market research following GO- JEK’s latest fundraising round, which brought investment from PT Astra International Tbk (IDX: ASII), U.S’s Google Inc., China’s JD.COM, Meituan-Dianping, Tencent Holdings and Singaporean sovereign fund Temasek Holdings.
GO-JEK CEO and Founder Nadiem Makarim, said: “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.”
He continued the best way for the company to expand internationally is by partnering with talented local teams. “Our role will be to act as advisors, giving the new companies the benefit of our operational and development experience so they can take the spirit with which we created GO-JEK and find the best way to achieve that locally,” said Makarim.
Recently, Allianz X, the digital investment arm of the Allianz Group, has announced a $35 million investment in GO-JEK. Previously, the company has raised $1.5 billion in venture capital funding from investors included Google and BlackRock,an American global investment management corporation.
Earlier in February, Astra International, the Indonesian conglomerate has invest $150 million in the one of the country’s unicorn. After the deals the value of GO-JEK at around $5 billion now.
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.
GO-JEK 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.
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.
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.