Go-Jek on path to domination
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