What's Next for Go-Jek's Expansion Plans in Indonesia? Go-Pay & IPO
Nadiem Makarim, Chief Executive Officer of Indonesian ride-hailing and logistics services provider Go-Jek, expects the company to conduct an initial public offering (IPO) within the next couple of years. Go-Jek, Indonesia's first billion-US dollar tech startup, offers various services to the Indonesian people, including transportation, delivery, lifestyle and payment services.
Go-Jek has become very popular among the Indonesian people and, as a side effect, has made life difficult for the conventional taxi services. Considering Indonesia has the world's fourth-biggest population (one that is young and tech savvy), has rapidly rising Internet and smartphone penetration figures, while there are many obstacles in the nation's logistics, distribution and (public) traffic systems, Go-Jek has been able to grow impressively in recent years. Due to Go-Jek's attractive perspectives several big investors, including KKR & Co and Warburg Pincus LLC, bought stakes in the company.
While initially Go-Jek functioned a source of cheap motorcycle rides on the streets of Indonesia's big cities, it has added various services to its portfolio, ranging from car rides and food delivery to massage and cleaning services. Regarding food delivery (Go-Food), the company has already become Indonesia's largest food-delivery business.
At Bloomberg's Year Ahead Asia Conference in Jakarta Makarim explained that Go-Jek's digital-payment service (called Go-Pay) is a top priority in terms of the company's business expansion in 2018 and beyond. Go-Pay is an alternative payment method that can be used by consumers to pay for services that are delivered by Go-Jek (the other payment method is cash). However, in the future Makarim wants to enable consumers to use Go-Pay to pay for various products and services that fall outside Go-Jek's services.
Go-Jek already secured an "e-money license" in Indonesia, meaning it is allowed to provide digital wallet services that can be accepted by online and offline merchants. Go-Jek is therefore now seeking new partners to sign up for this digital wallet system.
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