Indonesian ride-hailing firm Go-Jek says to expand overseas

Ruben Hill
May 25, 2018

Jakarta-Indonesian ride-hailing app Go-Jek said Thursday it would expand into Vietnam, Thailand, Singapore, and the Philippines as it takes on regional rival Grab in the fast-growing Southeast Asian market. In March, Uber Technologies Inc agreed to swap its Southeast Asian business for a 27.5% stake in Grab, thereby withdrawing from a hotly contested region of more than 600 million people.

The global expansion follows many months of detailed planning and market research following GO-JEK's latest fundraising round, which brought investment from Astra worldwide, Google, JD.COM, Meituan, Tencent and Temasek among others, as the company aims to expand its presence in Southeast Asia.

These local companies will "determine their own brands and identities to ensure good traction in each new market", Go-Jek said in a statement.

GO-JEK CEO and Founder Nadiem Makarim, said: "Consumers are happiest when they have choice and at the moment, people in Vietnam, Thailand, Singapore and the Philippines don't feel that they're getting enough when it comes to ride-hailing".

Just last month, Singapore taxi operator ComfortDelGro was said to be exploring a new deal with Go-Jek, after a partnership with Uber - which has since exited Singapore - fell through.

The company will start with ride-hailing services first before expanding to other sectors, such as food delivery, or even on-call masseurs and manicures, features which Go-Jek has in its home market in Indonesia. Go-Jek, a play on "ojek", the Indonesian word for motorcycle taxi, has been embraced by citydwellers in Indonesia as a solution to chronically congested roads.

Go-Jek's Go-Pay, first launched in April 2016, acquired three fintech firms, Kartuku, Midtrans, and Mapan past year to further grow its payment business.

Go-Jek raised about $1.5 billion in February - above its target of $1.2 billion - and the latest round of fundraising saw an inject of funds from Astra International, Google, JD.com, Meituan, Tencent, Temasek, and more.

Other reports by Click Lancashire

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