Go-Jek on path to dom­i­na­tion

Southeast Asia Globe - - Agenda -

Go-Jek, In­done­sia’s first startup val­ued at a bil­lion dol­lars, an­nounced last month that it would launch its ride-hail­ing app in the Philip­pines in early 2018 and that other launches across the re­gion would fol­low later in the year.

The com­pany also dis­closed in De­cem­ber that it had agreed to ac­quire three In­done­sian fin­tech play­ers – off­line pay­ment com­pa­nies Kar­tuku and Mid­trans, and lo­cal com­mu­nity group-based sav­ing and lend­ing net­work Ma­pan – in its on­go­ing bid to be­come a one-stop shop for dig­i­tal ser­vices. The com­pany started life as a ride-hail­ing app in 2010 but has since ex­panded into food de­liv­er­ies, busi­ness lo­gis­tics and mo­bile pay­ments, boast­ing 15 mil­lion weekly ac­tive users and an ex­ten­sive net­work of 900,000 driv­ers and 125,000 mer­chants. In a coun­try where 96% of the pop­u­la­tion has no ac­cess to credit cards, ac­cord­ing to KPMG, mov­ing into the mo­bile pay­ments sphere makes good busi­ness sense for Go-Jek, es­pe­cially given its pow­er­ful back­ing from Chi­nese gi­ants Ten­cent, as well as US pri­vate eq­uity firms KKR and War­burg Pin­cus. Ac­cord­ing to a state­ment from founder and CEO of Go-Jek Group Nadiem Makarim, the ac­qui­si­tions would help re­in­force Go-Jek’s lead­er­ship in pay­ments, “stim­u­late eco­nomic growth and im­prove lives through in­creased fi­nan­cial in­clu­sion in In­done­sia”.

A Go-Jek driver on the streets of Jakarta

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