Go-Jek to Launch Business in Singapore This Week
Open a new competition round in Singapore's ride-hailing ecosystem
Randi Eka - 29 November 2018
After the expansion plan officially announced some time ago, Go-Jek is now rumored to launch the "beta" version of its service in Singapore on Thu (11/29). The initial service only available for a limited amount of consumers.
Previously, Go-Jek had strategic partnership with DBS Bank to support its expansion in Singapore. In the previous agreement release, Andre Soelistyo, Go-Jek's president said Go-Jek Singapore will be launched soon after this partnership.
In the same release, it was mentioned that DBS customers will get the same opportunities and special offers for the beginning of Go-Jek service. DBS is going to be a strategic partner for digital wallet service in Go-Jek app.
According to McKinsey & Company research, Singapore is one of the countries with the most developed penetration of the non-cash payment model in Asia, along with Hong Kong and South Korea. Therefore, it's inefficient for Go-Jek to offer ride-hailing service without a digital payment system.
A new round for ride-hailing ecosystem in Singapore
Uber SEA acquisition has loosen the ride-hailing competition in Singapore. All services converge to Grab. In fact, although they refuse to be accused for doing market monopoly, there were no equal competitors. Go-Jek's arrival has freshen the air in Singapore's ride-hailing ecosystem.
The alternative service demand besides Grab is slightly indicated. ComfortDelGro is one of the taxi provider having a good impact. Companies claimed the service improvement post-uber acquisition. It was seen as a golden opportunity for other ride-hailing developers, including Tada.
However, to compete with Grab, requires a lot of effort. In fact, the company keep raising fund for app improvement to present multi-functional services. Having large capital means you can do many things to acquire users.
Go-Jek arrives with not-so-little capital, the latest news told us the old investors will raise funding to $9 billion - to provide equal service. Introducing app-based service for transportation in Singapore.
Singapore market is in fact not as big as Go-Jek's origin or other target countries. Users are not as much as Indonesian or Vietnam people. However, Singapore looks like a proof after Grab's duel in Indonesia, it's time for Go-Jek to prove its competency in the opponent's origin.
Go-Jek and Grab competition will be very interesting to be followed in the next round. It might not be transportation only, but also other innovation services the company keep innovating.
– Original article is in Indonesian, translated by Kristin Siagian