SINGAPORE (May 24): Go-Jek, the Indonesian-based ride hailing firm, will be investing $500 million in its international expansion strategy, entering four new markets – Vietnam, Thailand, Singapore and the Philippines – within the next few months.
The expansion plan pits Go-Jek directly against larger rival Grab, including in the latter’s home market of Singapore. 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.
See: Grab confirms acquisition of Uber's Southeast Asia operations; Uber CEO Khosrowshahi to join Grab's board
Go-Jek will start by expanding its ride-hailing services, but it ultimately aims to replicate the multiple-service business model it has made in Indonesia.
Currently, the group is working with regulators and other stakeholders across the region to pave the way for the new operations.
The companies will be run by local founding teams, with Go-Jek providing technological support and expertise gathered over the past three years as Indonesia’s most revolutionary tech business. The local companies will determine their own brands and identities to ensure good traction in each new market.
This expansion plan follows the group’s latest fundraising round, which brought investment from Astra International, Google, JD.COM, Meituan, Tencent and Temasek among others, as the company aims to expand its presence in Southeast Asia.
See: Google, Temasek coming in as new investors in Indonesia's Go-Jek
Nadiem Makarim, CEO and founder of Go-Jek says, “We believe the best way for us to expand internationally is by partnering with talented local teams who share our vision and know exactly what will work best in their home countries. Our role will be to act as advisors, giving the new companies the benefit of our operational and development experience so they can take the spirit with which we created Go-Jek and find the best way to achieve that locally.”
Last month, the group was also said to be in talks with local taxi firm, ComfortDelGro to explore a partnership.
See: ComfortDelGro said to be in talks with Indonesia's Go-Jek to explore partnership
“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. We hope that as we arrive in new markets, we will quickly become everyone’s go-to lifestyle app. That is our aspiration. In the meantime, we hope our presence will provide the welcome competition markets need to thrive,” adds Makarim.
