{"id":4085,"date":"2017-02-26T17:14:12","date_gmt":"2017-02-26T22:14:12","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/go-jek-lovechild-between-taskrabbit-and-uber\/"},"modified":"2017-02-26T17:20:23","modified_gmt":"2017-02-26T22:20:23","slug":"go-jek-lovechild-between-taskrabbit-and-uber","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/go-jek-lovechild-between-taskrabbit-and-uber\/","title":{"rendered":"Go-Jek: Lovechild between TaskRabbit and Uber"},"content":{"rendered":"<h6><em><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4092\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976.jpg\" alt=\"\" width=\"1100\" height=\"757\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976.jpg 1100w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976-300x206.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976-768x529.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976-1024x705.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/462734976-600x413.jpg 600w\" sizes=\"auto, (max-width: 1100px) 100vw, 1100px\" \/><\/em><strong><em>This picture taken on January 20, 2015 shows a gridlock in Jakarta&#8217;s main road. Jakarta has just won the distinction of having the worlds worst traffic, according to a recent index. (BAY ISMOYO\/AFP\/Getty Images)<\/em><\/strong><\/h6>\n<p>Jakarta was chosen as the\u00a0city with the worst traffic by TomTom Navigation who used its satellite navigation data to determine the number of times a car started and stopped per kilometer, then multiplied it by the average annual driving distance in the country. Relying on information from TomTom devices in 78 countries, the next worst cities for traffic jams are Istanbul, Turkey; Mexico City, Mexico; Surabaya, Indonesia; and St. Petersburg, Russia. No American cities appeared in the top ten. [1]<\/p>\n<p>As Greater Jakarta\u2019s population expected to raise from 30 million today to more than 40 million by 2040, wasting hours stuck in traffic looks like to be a more of a daily frustration for its residents. As the last biggest metropolitan in Asia without metro, is Jakarta destined to be jammed forever?<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Screen-Shot-2017-02-26-at-3.27.31-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4087 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Screen-Shot-2017-02-26-at-3.27.31-PM.png\" alt=\"\" width=\"672\" height=\"313\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Screen-Shot-2017-02-26-at-3.27.31-PM.png 672w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Screen-Shot-2017-02-26-at-3.27.31-PM-300x140.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Screen-Shot-2017-02-26-at-3.27.31-PM-600x279.png 600w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/a><\/p>\n<p>\u201c(Due to traffic jam) motorbikes are twice the speed of a car in Jakarta, they use a 10th of the fuel, are a 10th of the cost and use far less space,\u201d says\u00a0Nadiem Makarim HBS 2011), founder and CEO of\u00a0Go-Jek, the city\u2019s two-wheeled version of Uber. \u201cMotorbikes are much more efficient. There\u2019s no reason for cars to exist in this city at all.\u201d<\/p>\n<p style=\"text-align: center\"><iframe loading=\"lazy\" title=\"What is GO-JEK?\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/0PFzoaep5KA?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Freelance motorcycle taxi driver, Ojek, already existed as early as 1969 in Indonesia. [2] Nevertheless, this informal economy sector was mature, highly disintegrated, and mostly used by those at the bottom of the pyramid. The service was very user unfriendly where price discrepancies and rider security are main key issues. Nadiem founded Go-Jek in 2010 to make the ojek riding experience seamless, but the company only took off in January 2015, when they first launched the Android app to replace its call center booking system.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4103 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/gojek.jpg\" alt=\"\" width=\"690\" height=\"390\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/gojek.jpg 690w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/gojek-300x170.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/gojek-600x339.jpg 600w\" sizes=\"auto, (max-width: 690px) 100vw, 690px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4089 alignleft\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/screenshot_2016-10-12-22-08-51.png\" width=\"331\" height=\"712\" \/>Since then, Go-Jek app has been downloaded 25 million times. The company continue to add informal businesses onto its platform. Not only getting around the city, but its app users also can get a massage therapist or a house cleaner come to their door within 90 minutes. Go-Jek\u2019s food delivery business is now Asia\u2019s largest outside China and Go-Jek also offers hairstylist, theatre tickets, flowers, and prescription medicines. Go-Jek is literally the lovechild between TaskRabbit and Uber on steroid. [3]<\/p>\n<p>\u201cIt\u2019s pretty hard to find something you can\u2019t get by motorbike delivery,\u201d says Makarim. \u201cYou don\u2019t need to waste time in traffic to get what you want. We bring everything to you. If you didn\u2019t want to you wouldn\u2019t have to leave your apartment.\u201d<\/p>\n<p>Go-Jek raised $550 million in new funding, that values the strartup at $1.3 billion (post-money). The money was provided by new investors\u00a0KKR, Warburg Pincus, Farallon Capital and Capital Group Private Markets. Existing investors\u00a0Sequoia India, Northstar Group, DST Global, and NSI Ventures are also take part. The deal makes Go-Jek one of the few unicorns in Southeast Asia. Others tech companies valued more than $1 billion include games firm Garena ($3.75 billion), Uber rival Grab (estimated $1.5 billion-$1.6 billion) and Rocket Company\u2019s Amazon-esque Lazada ($1.5 billion valuation). [4]<\/p>\n<p>Go-Jek\u2019s strategy to roll up all informal services into its platform is key to increase its user stickiness. Combined with their recently launched loyalty program, they hope to prevent the user from multihoming. Nevertheless, multihoming is rampant on its service provider side, as switching cost is almost zero. With VC funding on its back, Go-Jek announced that they are ready to bleed as they subsidize their informal service providers on each order.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>http:\/\/time.com\/3695068\/worst-cities-traffic-jams\/<\/li>\n<li>http:\/\/historia.id\/kota\/mengorek-sejarah-ojek<\/li>\n<li>https:\/\/www.theguardian.com\/cities\/2016\/nov\/23\/world-worst-traffic-jakarta-alternative<\/li>\n<li>https:\/\/techcrunch.com\/2016\/08\/04\/indonesias-go-jek-raises-550-million-to-battle-uber-and-grab\/<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This picture taken on January 20, 2015 shows a gridlock in Jakarta&#8217;s main road. Jakarta has just won the distinction of having the worlds worst traffic, according to a recent index. (BAY ISMOYO\/AFP\/Getty Images) Jakarta was chosen as the\u00a0city with [&hellip;]<\/p>\n","protected":false},"author":1185,"featured_media":4097,"comment_status":"open","ping_status":"closed","template":"","categories":[1212,380,1180],"class_list":["post-4085","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-multihoming","category-transportation","category-two-sided-platform"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/growing-businesses-in-the-age-of-platforms\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Go-Jek: Lovechild between TaskRabbit and Uber - Digital Innovation and Transformation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/go-jek-lovechild-between-taskrabbit-and-uber\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Go-Jek: Lovechild between TaskRabbit and Uber - Digital Innovation and Transformation\" \/>\n<meta property=\"og:description\" content=\"This picture taken on January 20, 2015 shows a gridlock in Jakarta&#8217;s main road. 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