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Gojek to focus on operations abroad as pandemic hits Indonesian market
Gojek has brought its services to Singapore, Thailand and Vietnam and is now looking to those markets for growth.
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Your side, my side: Drivers of online ride-hailing platform Gojek wear protective screens on their backs during a trial session for changes made in response to the COVID-19 pendemic in Jakarta. (JP/Dhoni Setiawan)
H
omegrown ride-hailing decacorn Gojek will focus on business operations abroad to expand its market share and boost its business performance as the Indonesian transportation industry is likely to remain sluggish this year.
Co-CEO Kevin Aluwi said the ride-hailing operations had suffered significantly last year as the pandemic upended economic activity, adding that the company did not expect a full recovery until at least the end of 2021, since the outlook on the transportation industry remained dull.
“We are looking to expand our market share and maximize business potential abroad [where] the scale of the pandemic is not as great as in Indonesia and people’s activity has recovered faster. This will help our business performance,” he said during the Kompas100 CEO Forum webinar held by the Kompas newspaper on Thursday.
Gojek has brought its services to the Southeast Asian countries of Singapore, Thailand and Vietnam.
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The coronavirus outbreak disrupted business activity as the government last year implemented strict containment measures that discourage people from leaving their homes. As a result, the transportation sector shrank 30.80 percent year-on-year (yoy) in last year’s second quarter and 16.70 percent in the third. At the same time, Indonesia entered a recession as the whole economy contracted 3.49 percent yoy in the third quarter, after shrinking 5.32 percent yoy in the previous three-month period.
The e-Conomy SEA 2020 report by technology behemoth Google, Singaporean state-owned investor Temasek and global consultancy Bain & Co projected that Indonesia’s transportation and delivery business gross merchandise value (GMV) to contract 18 percent yoy last year due to the pandemic.
