Indonesian ride-hailing app Go-Jek will officially launch in Vietnam this July, the same time as Singapore-based ride share app, MVL plans to launch, bringing more competition to the market currently dominated by Grab after it had acquired Uber’s Southeast Asia operations in March.
Go-Jek was founded in 2010 and has raised more than $1.5 billion USD from investors such as China’s Tencent Holdings and Google. Go-Jek started out as a phone-based motorbike ride-hailing app but is now a digital platform that offers delivery, logistics and transportation services to both individuals and companies.
In order to attract Vietnamese drivers, Go-Jek is offering free installation of its geographical positioning system and plans to charge drivers a 20% commission. Many current Grad drivers are expected to sign up as Go-Jek drivers since they pay Grab a commission of 28%.
Go-Jek launched its main ride-hailing app in 2015 in Indonesia. As well as ride-sharing, the service has evolved to allow users to summon drivers to deliver takeaway food, shop for groceries and deliver presents to people across town.
One of the company’s spin-off apps, Go-Life, even allows customers to call people to their home to give them a haircut, clean their bathroom or change the oil of their car. Meanwhile, the company’s digital wallet Go-Pay lets users pay for everything from utility bills to movie tickets.
Go-Jek’s initial operations in Vietnam will be limited to ride-hailing and ride-sharing but the company’s strategy is to bring all of its services to the Vietnam market within 2 ~ 3 years and may be accelerated due to market conditions.
Go-Jek has an estimated value of $4 billion USD and has received investment from international companies Google, KKR & Co, Warburg Pincus and Singapore’s state sovereign wealth fund Temasek.
Nadiem Makarim, CEO of the company said that the company is focused on its digital-payment services in 2018 and is planning for an IPO in 2 ~ 3 years. According to CEO Makarim, “The greatest risk is not having enough resources to execute our ambition. It used to be competition, but not any more.”