Tag: gojek

Facebook, PayPal to invest in Gojek

Facebook and PayPal are investing in Indonesian ride-hailing start-up Gojek, joining technology giants such as Google and Tencent, the company said on Wednesday. 

The investment by Facebook and PayPal is a boost to Gojek’s payments and financial services business as it competes with Singapore-based rival Grab. 

“By working together, we have the opportunity to achieve something truly unique as we aim to help more businesses to digitize and ensure that many millions more consumers are enjoying the benefits that the digital economy can bring,” Gojek co-chief executive Andre Soelistyo said in a statement.

Gojek’s ride-hailing app was first introduced in 2015. Its payment business, GoPay, has become the largest e-wallet in Indonesia, driven by the company’s popular delivery service GoFood.

PayPal’s investment will allow its payment service to be integrated into Gojek’s services, Gojek said. 

GoPay customers will also be able to gain access to PayPal’s network of more than 25 million merchants around the world, it said.

Facebook’s investment is the first the social media giant has made in Indonesia. The company’s Whatsapp texting service is among the most popular messaging services in the South-east Asian country.

“Working together we can help bring millions of small businesses and the customers they serve into the largest digital economy in South-east Asia,” said Matt Idema, WhatsApp chief operating officer. 

Gojek’s solution to plastic pollution

The Indonesian do-it-all app Gojek is taking steps to tackle the mounting problem of plastic waste, to which it has inadvertently contributed through its hugely popular food delivery service.

Gofood is now available in 74 cities with 400,000 food merchant partners, most of them small and mom-and-pop eateries previously unserved by existing food delivery services. That adds up to a lot of packaging in a country that is already the second-biggest source of plastic waste after China in the world’s oceans.


A scavenger was sorting and collecting plastic bag waste at the top of a garbage mountain in Bantar Gebang landfill in Bekasi, West Java, where tonnes of trash from Jakarta is dumped everyday. Photo: The Parrot/Ismira Lutfia Tisnadibrata

Gojek co-founder Kevin Aluwi, speaking at an event to unveil a new corporate logo last month, said some food merchant partners had begun charging customers for plastic spoons and forks, and some have switched to biodegradable or paper-based container bags, while Gofood itself is ready to do its part.

“Starting this month (July), we are distributing special bags to drivers whose Gofood order volumes are high. The bag can contain a lot of food orders, so there is no need to use plastic bags anymore,” Kevin said, responding to a question about how the company aimed to solve the plastic waste problem.

The anti-waste initiatives are in keeping with the spirit embodied by the new logo, which resembles a simple power-on button and has been dubbed as “Solv”. Gojek is aiming to be Southeast Asia’s super app offering more than 20 on-demand services, including grocery shopping, house cleaning, massage, laundry and vehicle maintenance and repair in a single platform.

That’s in addition to the document delivery and motorcycle ride-hailing services that were the first offerings of the company when it was founded in 2015. Now valued at US$10 billion and offering services from food to finance, Gojek is looking to make itself indispensable to customers.

The food delivery service is now available in Vietnam, where it is the second-biggest player in the segment, and in Thailand, where the company has expanded along with its motorcycle taxis and car-hailing services.

Gojek is now eyeing Singapore where its car drivers may have to handle food deliveries because the city-state doesn’t recognize motorcycle taxis, said Andre Soelistyo, president of the Gojek group.

“Gofood has become the largest food delivery service in Southeast Asia, even larger than similar services in India even though our population is only a quarter of India’s,” he said.

But food delivery apps have become so popular in so many countries that excess use of takeout plastic containers, utensils and packaging has become a major concern.

The Indian restaurant portal Zomato, which has a food delivery service that processes 16.5 million orders a month, is a case in point. Founder and CEO Deepinder Goyal wrote in a September 2018 blog post that an “unintended consequence” of the business was that it had increased the use of more plastic packaging material.

All the food delivery aggregators in India combined process around 35-40 million orders a month, he wrote.

“These many orders add up to 22,000 metric tonnes of plastic waste created every month in India. And whether we intend it or not, quite a lot of it ends up in the ocean,” Deepinder wrote.

The Zomato app now offers consumers an option not to include plastic cutlery in their orders and works with food merchant partners to help them comply.

“Much as we care about delighting our partners and our users, we must also care about the impact we have on our planet,” Deepinder wrote.

Read the full story in Bangkok Post


App-based bike taxis take Indonesia by storm

Whether you’re in a hurry to go somewhere or need a bite or two, help is in the palm of your hands.

Smartphone application-based motorcycle taxi companies have sprung up in Indonesia since last year, taking advantage of the growing use of mobile internet.

They followed the success of Go-jek, a ride-sharing service similar to Uber, but with bikes as the means of transport.

Worsening traffic in major cities and a lack of efficient mass transport has prompted many Indonesians to switch to motorcycles, triggering the growth of bike taxis, or  ojek.

Jakarta, a city of 10 million people, has the worst traffic in the world, with about 33,240 stop-starts per year, according to an index released last year by lubricants company Castrol. Istanbul came second with 32,520 stop-starts.

The index gathers data from TomTom navigation users to calculate the number of stops and starts made per kilometer, multiplying that figure by the average distance driven every year in 78 countries.

A Jakarta resident spends about two hours in traffic each trip on average, according to a study by the Institute of Transportation and Development Policy (ITDP).

The Transport Ministry last month declared such taxi services illegal. The ban was lifted hours later after President Joko Widodo stepped in, responding to a public outcry.

Here is a non-exhaustive list of app-based motorcycle taxi services in Indonesia:

1. LadyJek

LadyJek, an app-based motorcycle taxi service for females, began operating in October.

“We noticed there was a lack of comfortable public transport for women,” founder Brian Mulyadi said.

Recent cases of late-night rape in public minivans have caused worries for women travelling at night.

Rider Mutia said she sometimes received orders from men.

“When I found out the person who ordered was a man, I refused to take him,” said Mutia, a 30-year-old mother of two, wiping her sweat with a scarf on a stifling hot day.

She said her husband did not object to her job.

“I’m free. I can even come home very late at night and he doesn’t mind,” said Mutia, who is from Aceh, a conservative Muslim province where women are required to wear headscarves.

LadyJek has about 2,500 drivers, who wear black-and-pink jackets and pink helmets, and its application has been downloaded 10,000 times on Android.

2. UberJek

UberJek – no business relation with global ride-sharing service Uber – wants to make sure its customers don’t have to put up with body odour during their trips, so they only hire smell-free motorcycle drivers.

Applicants are tested for body odour by professional smell sniffers.

“Many ojek users have complained of drivers’ body odour,” founder Aris Wahyudi said. “We want to provide customers with the best service.”

Unlike those of other ojek services, UberJek drivers do not wear a uniform.

“Most customers don’t like their ojek driver to wear a uniform because they want to be seen as riding with a friend or relative,” Aris said.

In one of those recruitment sessions, each applicant was made to spread his arms in front of a fan, simulating motorcycle riding, while a person behind him who acted as a passenger sniffed his body odour.

Another applicant, Baskoro, said the body odour was a surprise for him.

“I didn’t expect to be tested for body odour, but luckly I always wear perfume when I go outside,” the mustachioed 49-year-old former drug salesman said.

One of those who passed the tests, David Kuswanto, said he did not use any fragrance to chase the stinkies away.

“I was confident because before I applied I asked my wife and kids if I had a body odour issue and they said I was fine,” said David, who works freelance as a wallpaper salesman.

3. Ojek Syari Indonesia (Ojesy)

Ojek Syari (Ojesy) hires only female drivers who wear Muslim headscarves, but accepts female customers regardless of religion.

Drivers must have the permission of their husbands or parents to join the service, Ojesy business developement manager Agus Edy said.

They are not allowed to roam streets without a passenger, but stay at home waiting for orders from the mobile application.

“Some women don’t feel comfortable riding a motorcycle with a man,” Agus said.

Ojesy driver Indari Santika, a mother of one, said she only takes orders when she is not taking care of her child or cooking.

“I often have to cancel orders in the mornings because as a housewife I’m also busy at home,” she said.

She said many of her fellow drivers are single mothers.

“For them this is their only source of income,” she said.

Ojek Syari operates in Surabaya, Jakarta and other cities on Java.

4. Go-Jek

Go-Jek was founded in 2011 by internet entrepreneur Nadim Makarim.

Faced with the daily traffic gridlock in Jakarta, Makarim decided to start a motorcycle taxi company, taking advantage of Twitter and Facebook to create buzz for his innovative project.

“The traffic problem in Jakarta is becoming a real crisis,” Makarim said. “We interviewed a bunch of ojek drivers and I learnt they spent about 75 per cent of their day staying idle, waiting for customers to come to them.”

More than 200,000 motorcycle owners in major Indonesian cities have joined Go-jek, making it the most popular bike-taxi service in the country.

Its drivers are easily recognizable with a bright green jacket and helmet emblazoned with the company name.

Go-Jek has also expanded its business to include package and food delivery,  shopping and house-cleaning services.

5. GrabBike

Formerly known as GrabTaxi, Grab was first launched as a taxi-hailing company in 2011, now operating in Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines.

In May, it launch its motorbike taxi service in Indonesia, GrabBike.

“Ojek is a popular mode of transport here in Indonesia, so it was only time before we transformed it,” said Grab marketing vice President Cheryl Goh.

GrabBike offers medical insurance for all its passengers and drivers, a scheme the company described as the first of its kind.


App-based Transport Ban Shows Lack of Coordination Under Jokowi’s Leadership

Indriaty Octarina was enraged when she found out that her favorite mode of transport, the popular Uber-style motorcycle taxi service Go-Jek, was declared illegal by Indonesian transport minister Ignasius Jonan on Friday last week.

As a worker who must go through the traffic hell from her home to office located in the Jakarta Stock Exchange building in South Jakarta every day, the news struck her like a thunderbolt, she said.

“I use Go-Jek every day because it is faster and cheaper to go anywhere with it. Taxi fare is just too expensive, and public transportation is just not safe or comfortable. What should we do now?” she asked The Parrot.

The news that Jonan had announced a ban on app-based transportation in any form – including Go-Jek, Grabbike and Uber – shocked not only Indriaty but most of the Indonesian public.  Although the minister indicated that the ban had legal standing, nobody could understand why a ban was suddenly put in place on ojeks, or private motorcycles being used as public transportation, after millions of people, especially those in big cities, have used them for years.

But the new app-based transport, especially Go-Jek, with its vetted and uniformed operators, who are trained to be polite, is cutting dramatically into traditional taxi and motorcycle services.

“Calling on the National Police and regional governments to enforce the law on public transportation, under which the massively popular vehicle-hailing services like Uber and Go-Jek strictly speaking are illegal,” Jonan’s directive to the police said in announcing the ban.

In this case, the popularity of the app-based services won out in dramatic fashion.  Users and supporters vented their anger through social media and within hours the uproar had become so loud that Jokowi had to intervene. A few hours after Jonan announced the ban, the president reversed it.

“Don’t let the people be burdened because of regulations,” Joko said on his official Twitter account, adding that regulations “need to be managed” and that he would “immediately” summon Jonan for talks.

“Innovation by the younger generation should not be restrained and applications such as Go-Jek exist because they are needed by society,” Jokowi told reporters at the state palace only a few hours after the ban.

“I don’t know what has just happened. Such a strange day,” Indriaty Octarina the Go-Jek user told The Parrot.

Go-Jek’s founder and CEO Nadiem Makarim—one of the business people in Jokowi ‘s entourage during his recent visit to the United States – expressed his gratitude, calling it a victory for the democratic process and the people.

“Dear GO-JEK users, President ‘Jokowi’ just answered our prayers by cancelling the Transportation Minister’s circular regarding the prohibition of app-based ojek and online taxi services. Thank you very much for your support on social media,” Nadiem wrote in an e-mail sent to all Go-jek users, saying that he was touched by the enormous public support.

Nadiem added that the withdrawal also guaranteed the welfare of the families of around 200,000 drivers in several provinces in Indonesia who make a living as Go-Jek operators.

Go-Jek isn’t Alone

Nonetheless, the confusion regarding changes in public policy is not new under the Jokowi administration, with political analysts often saying it shows evidence of lack of coordination and that Joko is “unable to fully control his ministers.”

Earlier in January this year, for instance, Manpower Minister Muhammad Hanif Dhakiri announced that the government would require existing and prospective foreign workers to pass Indonesian language tests to be eligible for a work permit, a move seen by many foreign investors as protectionist.

The language proficiency requirement is mentioned in Manpower Minister Regulation No. 12/2013 on procedures for the employment of foreign workers. The regulation stipulates a number of requirements for foreign workers to obtain work permits, including the ability to communicate in Indonesian. However, the regulation excludes commissioners, directors and those in temporary employment.

However the plan was scratched in early March after Korean, Japanese, American and European business chambers objected to the latest manifestation economic nationalism from Indonesia’s establishment.

The plan was regarded as putting barriers in place for foreign investment at the same time the president has repeatedly said he wants to deregulate and speed up the process for obtaining permits to boost investment amid three years of declining pace in economic growth.

The previous coordinating minister for economics Sofyan Djalil told media in April that the business community basically “don’t want and don’t need” this kind of regulatory cleanup, raising more questions whether Joko Widodo is really in charge. It has led to a constant battle on the president’s part to try to keep the deregulation process moving.  Go-Jek and its app-based partners are just one of many examples of the difficulty.

Digital style motorcycle service “Go-Jek” thrives despite resistance from traditional competitors

When Indonesian President Joko Widodo goes to the US on Oct. 25 for a state visit, among the prominent figures and business people in his entourage will be Nadiem Makarim, a young Harvard graduate and originator of what might be called the Uber of the motorcycle world.

Makarim has been described as the personification of the young professional that Jokowi, as the president is known, is looking for to boost the country’s creativity sector.  The 31-year-old Makarim in 2011 founded Go-Jek,  a play on the Indonesian word ojek, or motorcycle taxi. The service has become wildly popular on Jakarta’s traffic-choked streets.

Go-Jek won the Global Entrepreneurship Program Indonesia in 2011. The  young entrepreneur was also selected by the Geneva-based New Cities Foundation as one of the world’s nine outstanding urban innovators in 2015. He has spoken to hundreds of global urban leaders about their success in tackling some of the greatest current urban challenges.

While motorcycle taxis are ubiquitous in Jakarta, Makarim combined a penchant for marketing genius with up-to-date technology, dressing his drivers in smart green jackets and helmets and using Android and iOS apps so that their customers can track them as Uber does.

Customers can order a Go-Jek to either transport them to their destinations or stay home and ask the driver to deliver goods, order food or even shop for them. As with Uber in other more advanced metropolitan areas, users can track the driver’s location via a global positioning system (GPS), which tells them exactly how long it will take for the driver to arrive.

Go-Jek’s popularity has been rising on the slogan “An ojek for every need.” After launching “Go-Box” which serves customers with various sizes of trucks for transportation, it also introduced “Go-Glam” for beauty care services, “Go-Clean” for cleaning services, and “Go-Massage” which offers a private masseuse delivered to customers’ homes.

That has raised antagonism of more traditional ojek riders, much as traditional taxi drivers in other cities have grown angry from the competition from Uber, which is cheaper, trackable via internet, and whose drivers are supposed to be guaranteed to be polite. Go-Jek users need not bargain as the company sets a fixed price for each kilometer traveled. It also offers a flat tariff during non-rush hour of 15,000 Rupiah (US$1.10) for maximum 25 kilometers.

Traditional ojek cyclists don’t undergo a vetting process and aren’t registered. They take their payments in cash and prices are a matter of negotiation that can become heated and annoying.  By contrast, Go-Jek drivers register, undergo basic vetting, are trained to be polite, and offer passengers helmets and facemasks that are guaranteed to be clean, unlike traditional ojek drivers. That has created fierce competition from traditional ojek cyclists who wait for customers on the streets.

Some have openly attacked Go-Jek drivers when they are about to enter their territory. Media reports have also shown traditional ojek putting up banners saying “Go-Jek drivers are not welcome here.”  That has forced Go-Jek drivers to stay undercover to avoid threats and assaults.

Makarim has publicly stated that the company does not aim to compete with local ojek drivers, but to help them develop instead. “We welcome you to join Go-Jek anytime,” he said to traditional ojek.

Go-Jek says it has signed up more than 2,500 participants in Jakarta with more than 35,000 nationwide.

In addition to its consumer appeal, Go-Jek is regarded as a quick, if partial solution to the dreaded Jakarta traffic. Despite previous warnings from transportation experts that gridlock would become total in 2014, the city has failed to take swift action to avoid it despite some efforts to put a light rail system in place. The construction of the rail system, the country’s first, along with several elevated roadways, has exacerbated the problem, a major reason Go-Jek is getting a warm welcome.

According to the Jakarta government, private vehicles grew at a rate of 11 percent in 2013 while road growth was almost stagnant at only 0.01 per cent. There are more than 38 million private vehicles operating in Jakarta, including 26.1 million motorcycles, 5.3 million cars, 1.3 million buses and 6.1 million trucks.

Following its success, the company has recently spread their business to other big cities in the country including Bandung, Bali, Surabaya and Makassar. The company also said that its drivers have been equipped with medical and accident insurance.