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Go-Jek strengthens grip on Indonesia’s distant regions
Homegrown ride-hailing app Go-Jek has launched its range of services in Merauke, Papua, in a bid to widen its reach to the easternmost parts of Indonesia following a similar expansion to Sabang, Aceh, last month
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omegrown ride-hailing app Go-Jek has launched its range of services in Merauke, Papua, in a bid to widen its reach to the easternmost parts of Indonesia following a similar expansion to Sabang, Aceh, last month.
The expansion came on the heels of the company’s newly established presence in neighboring Southeast Asian countries such as Vietnam and Thailand — under the brands Go-Viet and Get, respectively — in July.
The recent rollout in Sabang, which includes flagship services such as Go-Ride and food delivery service Go-Food, emphasizes the partnership with small and medium enterprises (SMEs), said Go-Jek CEO Nadiem Makarim.
“Go-Jek believes that technology can help enhance people’s lives. Through the expansion in Sabang and Merauke, we provide support for more SMEs and smallholders in the country,” Nadiem said during the launch of the Merauke operation at Go-Jek’s head office in Jakarta on Wednesday.
Chief financial officer Kevin Aluwi said Go-Jek’s focus on SMEs was driven by growing demand from entrepreneurs across Indonesia, including Sabang and Merauke. Acknowledging the potential of various SMEs in the country, Go-Jek aimed to bridge interaction between service providers and their customers through its mobile app, he said.
“Our commitment to the empowerment of SMEs in Indonesia has been proven by the fact that 85 percent of Go-Food vendors are smallholders with only one business branch,” Kevin said, claiming that the collective revenue of small, family-owned restaurants had tripled after they joined Go-Food.
The company’s expansion to Merauke was met with enthusiasm by the region’s regent, Frederikus Gebze, who regarded the event as historic momentum as Indonesia commemorates its 73rd year of independence on Aug. 17.
“Go-Jek users in Merauke mostly use the app for its Go-Food service. I saw small restaurants crowded with a bunch of Go-Food drivers on the first day of launch,” said the company’s eastern Indonesia strategic head Anandita Dariatmaja, who spoke on behalf of Go-Jek partners in the region.
Also present at the Wednesday event, Communications and Information Minister Rudiantara said the government was ready to support Go-Jek’s advancement in order to empower entrepreneurs across the country.
“I believe that the expansion of Go-Jek and its workforce digitization will create more job opportunities across the nation. Therefore, we may have a real chance of narrowing the gap between the rich and the poor in Indonesia,” he said.
Transportation Minister Budi Karya Sumadi echoed Rudiantara’s support, saying Go-Jek would be essential in the everyday lives of Merauke residents.
With its latest expansion in Merauke, Go-Jek is now available in over 140 regencies across Indonesia.
In June, the company’s rollout in Sabang was similarly well received as it also offers Go-Send and Go-Shop in addition to its popular Go-Ride and Go-Food services.
A month later, Go-Jek was launched in Vietnam under the brand Go-Viet and had been fully operational since then. Go-Viet had amassed 15 percent of the market share in its first couple of weeks, Nadiem said.
Meanwhile, in Thailand, Go-Jek has established the brand Get, but it was not yet operational, said Go-Jek representative Michael Say. He confirmed that the company was also eyeing Singapore and the Philippines for future expansion in Southeast Asia.
Ahead of the 2018 Asian Games, which will commence from Aug. 18 to Sept. 2, Go-Jek has raised its fare to a range between Rp 2,200 (15 US cents) and Rp 3,300 per kilometer.
Michael said the fare hike had been in the pipeline for some time and was not in any way related to preventing a protest by Go-Jek drivers during the sports event.
Previously, online ojek (motorcycle taxi) drivers associated with the Two-Wheel Action Movement (Garda) threatened to stage a protest against Go-Jek and its competitor Grab during the Games after expressing disappointment in both of the companies’ failure to raise the fares to Rp 4,000 per km.
“The new rate simply serves as incentive for our partners to keep up their exceptional work,” he said, adding that the increased fare would still apply following the Games. (rfa)
