Will Go-Jek Penetrate Into Singapore’s Market Successfully?
The ride-hailing industry has always been a competitive one as it is a means of transportation and everyday, people are travelling around, commuting to work, running errands, business meetings etc. With the withdrawal of Uber from the competition in Southeast Asia, and is eventually acquired by Grab. Grab will now run and manage Uber’s operations and assets in countries such as Vietnam, Thailand, Philippines, Myanmar, Indonesia, Cambodia, Malaysia and Singapore.
A little about Go-Jek
With Uber out of the way, this does not mean that there is no space for new entrants to enter into the ride hailing space. Go-Jek is a technology company which is very much similar to Grab when it comes to their motorbike taxi services which is largely used in Indonesia, where the company was founded. Besides penetrating into the transportation space in Indonesia, Go-Jek was quick to also dip their toes into taxis, private cars, food delivery, mobile payments etc. The advancement that gave Go-Jek a little more edge and to be considered as a potential threat was when it integrated the launch of their very own e-wallet to facilitate all transactions and payments, making it cashless and adding the convenience for their app users.
Financially backed by Singapore’s Temasek Holdings and Tech Giant, Tencent, Go-Jek has more than enough firepower to take on any companies, and they are a force not to be reckoned with.
Go-Jek CEO, Nadiem Makarim saw the importance of motorcycle taxis, also known to many locals in Indonesians as ojeks, as a local himself, many a times, these ojek riders would face issues mainly concerning credibility and trust, but Nadiem felt frustrated as he got to know a couple of them on a personal basis and they are nice people after all. He wanted to resolve this issue and change the perception of the public when it comes to ojek riders. Nadiem himself, even before starting the company, was already engaging these riders on a regular arrangement to make deliveries or collection on behalf. From there on, what started to be a small call centre that only has a strength of 20 riders scaled way beyond his imagination. Till date, Go-Jek has penetrated into several asian countries, with multiple services such as courier, food delivery, on demand services such as shopping on demand.
Makarim quoted, “He or she is a human being with day-to-day problems, and we built a product around the frictions that an average person experiences in their day to day life.”
Now the golden question here is, “Will Go-Jek penetrate in Singapore’s transportation industry successfully, and shake things up for Grab?” There is no official announcements made from Go-Jek as of now, but it was reported on the 29th October, few days back that Go-Jek has officially launched their “GOJEK” portal where potential drivers or riders are able to opt in early to sign up with them.
Go-Jek’s Makarim also stated that through his actions, he wishes to inspire fellow entrepreneurs not only from Indonesia, but everywhere else in the world, paving the way where technology can be integrated into our daily lives to disrupt the norm and further enhance the livelihood of
Be one of the first few drivers to be working for Go-Jek and they were overwhelmed by the huge response and the sheer number of drivers who have expressed their interest to join them. Though actual numbers have not been mentioned, but one thing is for sure, Go-Jek has made its way into Singapore, and they are here to stay. No specific dates has been mentioned, but be sure to check on their social media pages or their corporate site for more updates!
One thing is for sure, since LTA has mentioned that they are undergoing discussions when it comes to point-to-point transportation, making sure that the ride hailing industry still remains open and competitive to all. With the new implementation of a regulatory framework that has been regulated, drivers need not worry about driving exclusively or being bonded solely by any one company, giving them the luxury of freedom to drive for who they want, opening up newer alternatives for passengers as well as drivers. With another competitor in the game, this would foster rapid improvements between both companies as the heat is on, but ultimately beneficial to the end customers and drivers.
Anticipating the day where Go-Jek would officially launch into Singapore, it would only be natural for them to be pitted against their main rival and only competition in Singapore, Grab. But how much of their services would actually be made available in Singapore is also another key issue that the government and LTA has to take into considerations. But that being said, chances of Go-Jek penetrating into Singapore would be highly successful, and it would definitely pose a threat to Grab.
The dominance over Singapore’s ride hailing industry will soon be over as Grab will properly be challenged. “i think that a lot governments and regulators are also actively welcoming healthy competition in their respective countries as it will be good for their consumer.” Go-Jek CEO Nadiem Makarim mentioned over an interview. While Singapore’s Land Transport Authority (LTA) is in the midst of discussion as to how much of Go-Jek’s multi-service would they allow into Singapore, Go-Jek might have to switch their business model and tweak some changes as what works for Indonesia might not necessarily work for Singapore.
Beyond all that, drivers are looking forward to driving with a new company, customers would be looking forward to a whole new experience of transportation, and this would equate to good news to consumers like you and me, as prices would definitely be competitive if either party wishes to stay in the game.