How Gojek Became A Giant Player In The Southeast Asian Market?

Today, whenever people are in trouble, they find the solutions to their problems on their smartphones. Due to the advancement of technology, there is no such task remaining that is impossible to perform through electronic devices. 

People nowadays can watch movies on OTT platforms, get health reports done, book a taxi, order daily household utilities, read news, etc.

In short, they just need to perform a few taps on their smartphones to get their job done.

Along with simplifying people’s lives, there are also many hassles of entrepreneurs that are getting cut off as they can manage their business entirely through applications.

The penetration of applications in people’s lifestyles has been up to a considerable level.

The only reason behind this is the prolonged working durations of people, so they can’t afford to visit the business premises.

Thus, apps came to the rescue, and people adopted their usage instantly. As a result, there were about 64.5 billion app downloads recorded in 2015, and it reached 143.6 billion downloads in 2021, which denotes the rising requirements for apps in the future.

These apps are introduced to many business segments, including hotel booking, restaurant, movie tickets booking, retail, taxi, home services, healthcare, etc.

Especially the healthcare sector, which experienced a huge rise after the arrival of the COVID-19 pandemic.

All other segments were running quite efficiently, but the people of southeast Asia were not yet satisfied as they needed to download and login into the individual apps to meet their particular needs. 

They demanded an all-in-one marketplace through which they could fulfill every requirement from a single destination.

Hence, the revolutionary solution was brought into the market, which integrated almost all business segments. Through these apps, people can utilize any services available across the entire town. 

These apps are also known as super-apps launched in many other countries like Careem in UAE, Paytm in India, Gojek in Indonesia, and many other apps.

All of them achieved a significant rise in their respective regions, but in the Southeast Asian region, there was no other super app that gained a massive rise like Gojek.

Gojek’s History:

The company was founded on 13 October 2010 and is headquartered in Jakarta, Indonesia. The name of the company ‘Gojek’ is derived from the word ‘Ojek.’

Initially, the company began as a call center that connected the people to a 2-wheeled ride-hailing service with about 20 drivers and a courier delivery service. 

Later in 2015, the company launched its application in the market, providing only 4 services: ride-sharing, payments, food delivery, and retail.

With further progress in 2018, the company started providing 20 services through an application. 

In 2020, they launched one more service in the market, which helps any sized business to grow in the market, and this service was named GoStore. Along with it delivering 3M market banks in years.

The app got a vast user base from Southeast Asia, which were 38 million users, which resulted in 190 million downloads in 2021.

Since 2010 until now, the company has made several mergers and takeovers with many Indian and Indonesian companies.

The company went on adding features to its app and is currently competing with its rival Grab to become Southeast Asia’s first multi-services app.

Why Only Gojek Became A Top Priority Among The People Of Southeast Asia?

There are many reasons behind the success of Gojek and its demand among the people in Southeast Asia.

We will discuss every reason behind its vast popularity in the Southeast Asian region. However, some aspects might affect them for staying in demand as it could gain local support from the people.

Other key reasons are mentioned below:

  • Comfort: It started as a ride-sharing service provider in 2010, and gradually the company went on adding the services into its application, keeping in mind the convenience of people as they get multiple services through an app. 

Currently, they are providing 18 different categories of services and are serving the people as a virtual all-in-one marketplace from where they can fulfill their any needs from a single application which might offer comfort to people and can be one of the reasons for gaining such fame.

Source: Harvard Business School

  • Wide Reach Of Services: They provide services across many regions in countries of Southeast Asia so that the people can access their services from any location of the country. In fact, as the company is headquartered in Indonesia, it is operating its business in over 167 cities across the country, which covers almost every corner.
  • Discounts: As Grab’s biggest competitor, the company provides attractive deals and offers to its customers. It would be the reason for the high usage of an application across the Southeast Asian Region. 

-Key Differences Between Gojek And Other Super Apps:

Gojek gets distinguished from other super apps in some aspects. Here are some of the points mentioned below through which Gojek stands out from the competition.

  • First, the company was initiated with only two services: courier and transportation. The point that makes it different from all other super apps is its transportation-based services, which fulfilled the necessity of citizens of the country by providing the Ojeks. They were the first ones in the region to offer these services online.
  • Second essential point is that they don’t give much importance to the social media platforms, while the other super apps of other countries focus on building their network by marketing through social media platforms in their respective regions. Hence, Gojek got distinguished in the market and had recorded a massive user-base that also included the users of ages ranging from 35-to 64 who most probably own mobile, but their usage of social media platforms is minimal or is not used.

Apart from standing different from the queue, there are also certain similarities that exist in an app that people would expect. Hence, it receives much popularity as it provides some basic common features required along with its unique ones.

Gojek Business And Revenue Model

The business model of Gojek contains three stakeholders: customers, merchants, and providers. The customer can select any services they like to get from an app and can get them done through service providers at their preferred locations. The merchants can register their businesses into an app and can start receiving the orders through an app.

Now, let’s plunge into the value propositions and customer segments benefitted are mentioned below:

Value Propositions: 

The value propositions for each of its stakeholders are mentioned below:

Customer: Value Propositions

  • Can select from a vast range of services
  • Can perform payments through an app
  • Can track the service providers
  • Receives enhanced services
  • Can give reviews and ratings for service quality

Merchant: Value Propositions

  • Receives a strong online presence.
  • Receives large customer base
  • Can raise the profit margins higher

Service Provider: Value Propositions

  • Flexible working hours
  • Additional earning
  • Can receive a tip from customers 

Customer Segments:

Take a look into different customer segments that are benefits:

Consumer Segment:

  • Those who don’t have their vehicle.
  • The people who need rapid service.
  • Those who are sound in using tech gadgets.

Provider Segment:

  • Users who have their car.
  • For the person who wants to earn more.
  • For the users who like adjustable work timings.

Merchant Segment:

  • The merchants can register their ventures into an application.
  • The vendors can receive a larger audience through an app.
  • Entrepreneurs can improvise the manageability of their enterprises.
  • Businesses become highly scalable.

Thus, the people who perfectly match all the criteria mentioned above can be a part of Gojek’s uplifting environment by enrolling into an app by entering the necessary credentials.

How Does Gojek Generate Revenue?

The company plays the role of intermediary between the customer and the ventures. They offer certain necessary specifications to both, which help them get the desired solutions to their problems. Hence Gojek charges some amount in the form of tax from both of them as it is part of their revenue. Let’s take a look at gojek revenue streams that are mentioned below:

Commission From Customers:

The consumer pays some amount of tax to the company as they receive the services delivered at their homes. Gojek charges commission in fixed percentage from the invoice software as a service tax for gaining the services at their preferred location.  

Commission From Merchants:

Merchants can easily manage their ventures by registering their businesses into an app. However, the entrepreneurs need to pay some charges as a commission to the company on receiving the payment of each order in their enterprise.

Commission From Service Providers:

As a part of assisting an app, the service providers need to pay the nominal charges, which is a part of the revenue stream of Gojek. Apart from it, the company also offers the service providers certain benefits like referral codes. 

Bottom Line:

Thus, in the era of digitization, entrepreneurs are looking for innovative solutions for their businesses that could help them enrich their ventures effectively. Today, people’s preferences have changed. They choose to solve every issue through apps available on their smartphones. 

Thus, entrepreneurs can take advantage of this new habit being adopted by people to raise their profit margins by shaking hands with the tech-stuff embedded into applications and can contribute their part to digitizing lifestyles.