  {"id":11049,"date":"2020-03-15T18:24:48","date_gmt":"2020-03-15T22:24:48","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/gojek-a-motortaxi-for-every-need\/"},"modified":"2020-03-15T18:24:48","modified_gmt":"2020-03-15T22:24:48","slug":"gojek-a-motortaxi-for-every-need","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/gojek-a-motortaxi-for-every-need\/","title":{"rendered":"Gojek \u2013 A Motortaxi for Every Need"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/www.underconsideration.com\/brandnew\/archives\/gojek_logo_before_after.png\" width=\"418\" height=\"174\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">The Indonesian unicorn Gojek has successfully managed to become much more than the \u201cUber of Indonesia\u201d by making sacrifices early towards its goal of becoming a \u201cSuper App\u201d, a platform for a multitude of services modeled after the Chinese WeChat platform.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">While widely successful and becoming a crucial element of daily life, culture and national pride in its home market, Gojek failed in expanding to other markets where it didn\u2019t have the opportunity and timing to succeed in multiple services at once.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"https:\/\/awsimages.detik.net.id\/visual\/2018\/11\/19\/a285fa6c-0948-4a7b-bf37-480dc0716cd8_169.jpeg?w=650\" width=\"418\" height=\"235\" \/>History<\/strong><\/p>\n<p><span style=\"font-weight: 400\">Gojek was started in 2010 by HBS alumnus\u00a0Nadiem Makarim as a platform for two-wheeled motorbike taxis (Indonesian \u201cOjek\u201d), which were common for many years. While the service operated as a phone line for the first years, it launched its app in 2015.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Following the app launch, the service exploded in popularity within the country. Gojek became the first Indonesian Unicorn, and Makarim a national celebrity. More than one million Indonesian riders service the various services, which include GoFood, the largest food delivery outside China.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As Grab followed Gojek\u2019s SuperApp model, the two companies started an intense competition, which saw Grab a<\/span><span style=\"font-weight: 400\">cquisition of the regional Uber operations, massive price wars, and Gojek\u2019s geographical expansion into Grab territory in Singapore, Philippines, Thailand and Vietnam.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The companies also launched competing online wallets, and Gojek\u2019s GoPay and Grab-invested Ovo soon offered highly visible discounts and cashbacks for offline purchases all across the country. As payments are seen as the must-win market, Gojek tried to reinvent itself as a Fintech company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">In 2019, Founder Makarim left the company to join the cabinet of recently reelected President Jokowi.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Product<a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11048 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1-300x1024.jpeg\" alt=\"\" width=\"234\" height=\"799\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1-300x1024.jpeg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1-88x300.jpeg 88w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1-176x600.jpeg 176w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-1-1.jpeg 375w\" sizes=\"auto, (max-width: 234px) 100vw, 234px\" \/><\/a><\/b><\/p>\n<p><span style=\"font-weight: 400\">Other than what were oftentimes named as global and regional peers &#8211; Uber and Grab &#8211; Gojek was designed as a multi-service platform from day one. When opening the app, it would not open to a map-view to select pick-up location, but rather to a screen prompting the user to select one of up to 18 services, which include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Ride &#8211; the classic service: transportation on the back of a motorbike from location A to B<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Car &#8211; transportation in a private car, identical to Uber\u2019s service.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Bluebird &#8211; transportation in a taxi of Indonesia\u2019s largest taxi company Bluebird<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Send &#8211; sending an item from A to B (this is also offered as logistics service to e-Commerce companies via API)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Food &#8211; food delivery fulfilled by a Gojek driver. Restaurants did not have to sign up in order to be listed in the app.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Go-Pulsa and GoBills to pay bills including electricity, mobile phone credits and other bills<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Other services brought service providers via Motorbikes to the customers, including Go-Massage for on-demand massages, and Go-Glam for on-demand beauty specialists.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Other products and services available include event tickets, home cleanings, moving, grocery shopping, car repairs<\/span><\/li>\n<\/ul>\n<p><b>Key Innovations<\/b><\/p>\n<p><span style=\"font-weight: 400\">Gojek succeeded were Uber largely failed by introducing some innovations and collaborations very particular to the local market:<\/span><\/p>\n<p><span style=\"font-weight: 400\">Top-up via Driver<\/span><\/p>\n<p><span style=\"font-weight: 400\">In a country where less than half of consumers are banked, and less than 5% own credit\/debit cards, adding money to Go-Pay\u2019s wallet was considered a core challenge to kickstart an online payment ecosystem and overcome the limitations of cash payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Starting in 2017, Gojek allowed customers to top-up their wallet by giving cash to the drivers, or alternatively asking drivers to add the change for an order to their wallet. In addition, this ensured that drivers carry the necessary cash to pay for orders that frequently were of higher value than their weekly pay.<\/span><\/p>\n<p><span style=\"font-weight: 400\">BCA partnership<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gojek partnered with Indonesia\u2019s largest banks to bring Drivers &#8211; as members of lower economic class mostly unbanked &#8211; to open bank accounts with BCA. Drivers were able to sign up for both a driver account and a bank account within one session, creating a win-win-win situation.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">\u2018An Ojek for every need\u2019<\/span><\/p>\n<p><span style=\"font-weight: 400\">In Jakarta\u2019s famous \u201cmacet\u201d, the traffic congestion that can make even the shortest taxi ride into a 2 hour test of patience, the motorbike is by far the most efficient means of transportation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">But more than that, a key differentiator to Uber\u2019s service in most developed countries is that motorbikes can also be used for delivery for other services. Uber\u2019s cars, which have to meet certain quality and age standards, are not ideal means of transportation for a portion of food. Instead, bikes and motorbikes are faster and cheaper. Different in Indonesia: The motorbike is both the best way to transport goods, service workers AND customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">These two facts show why Gojek was able to build a \u2018Super App\u2019 where Uber never tried.<\/span><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11045 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2-498x1024.jpeg\" alt=\"\" width=\"214\" height=\"440\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2-498x1024.jpeg 498w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2-146x300.jpeg 146w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2-292x600.jpeg 292w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/03\/WhatsApp-Image-2020-03-15-at-5.34.07-PM-2.jpeg 540w\" sizes=\"auto, (max-width: 214px) 100vw, 214px\" \/><\/a><\/p>\n<p><b>Gojek as the WeChat of Indonesia?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Today, Gojek is in a similar situation as WeChat in China. While WeChat used Instant Messaging to first gain market penetration, Gojek used transportation. But both are similarly trying to maximize penetration and customer value through a mobile wallet, and the integration of more and more services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">A key difference remains in the approach to other services. While WeChat has opened up APIs for external developers to build companies in the ecosystem, Gojek\u2019s platform remains to the large part closed to Gojek\u2019s own services &#8211; oftentimes as result of acquisitions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">Both are now in a situation that is almost impossible to disrupt, as they are deeply involved in both online and offline services. Gojek even started offering News Services and Netflix-like content.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Gojek\u2019s international scalability<\/b><\/p>\n<p><span style=\"font-weight: 400\">But the high footprint required to make such a model work makes it difficult to bring the model to other countries. Gojek\u2019s international efforts so far were of limited success, as it offered a very limited range of services &#8211; and therefore loses both much of its appeal, and of the strong network effects.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A deep-dive on Gojek, Indonesia&#039;s first unicorn, an app matching motorbikes with commuters, delivery services and service providers.<\/p>\n","protected":false},"author":12967,"featured_media":11050,"comment_status":"open","ping_status":"closed","template":"","categories":[1885,384],"class_list":["post-11049","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-digital-platform","category-uber","hck-taxonomy-organization-gojek","hck-taxonomy-industry-technology","hck-taxonomy-country-indonesia"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/platform-business-challenges\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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