Gojek Outline Long Term Strategy, Including Expansion to Malaysia and Philippines

Gojek to establish itself for expansion to Malaysia and the Philippines in the next year. This plan is included in its long-term strategy series named "Going the Distance."

"Next year there will be two additional countries, Malaysia and the Philippines. We are preparing everything so that we can be present in these two countries. In the Philippines, we are already present, but as a payment system, we are working on transportation services," said the Co-CEO Gojek André Soelistyo, Saturday (2/11).

The company had previously set aside $500 million (nearly 7 trillion Rupiah) for global expansion. He said the funds were still sufficient to enter a new country.

This series of expansions is intended to realize the company's aspirations to become global scale. Andre hopes to increase the ratio of Indonesian customers vs international markets to 50:50 from the current 80:20. This target will be achieved no later than the next five years.

"Indonesia remains the spearhead for us. What we have learned so far is suitable for developing countries. The issue is the same, there are inefficiencies and less developed infrastructure, so we can help MSMEs to progress. In our opinion, our platform is suitable."

In line with that, his party wants to open a service Gojek in Indonesia to be taken out. Of course, it is necessary to choose which one is in accordance with the conditions of each country, because it is not certain that what is suitable in Indonesia is definitely suitable for that country.

"Leave the leaders Gojek in that country to choose, which one is suitable. His dream next year is to provide any service as long as it can satisfy customers."

Especially in Singapore, Andre said the challenges in the country would only be about transportation, because the problem there is about mobility. Because the economy there is adrift more advanced than its neighboring countries.

"Singapore is unique because it is high-class and has a small population, so what is suitable in Indonesia is not necessarily suitable in Singapore. So our focus there is transportation."

Travel Gojek outside the cage, starting from the end of 2018 by entering Singapore. Then proceed to Thailand and Vietnam, a few months later. In the Philippines actually already exists, but as payment system.

The services provided in this country are still around transportation and food delivery. In fact, in Indonesia Gojek already provides more than 20 kinds of services, either provided alone or in cooperation with third parties.

Claimed international business contributions Gojek for the total transaction (Gross Transaction Value/GTV) in the past year reached $1,5 billion (almost 21 trillion Rupiah). Active users (MAU) Gojek in Singapore it is stated there are 800 thousand people, Vietnam (4,3 million), Thailand (2 million).

At the same time, the company boasts pride in the concept great app which is now a reference for global technology players, one of which is Uber. This model has successfully proven a business ecosystem that connects millions of people, customers, driver partners, merchants, and service providers.

Andre is also proud of the fact that many international talents are starting to look for careers at Gojek. In the past six months, the company has successfully recruited world-class technology industry leaders, including from Silicon Valley, as well as leading global companies such as NASA, Netflix, and others.

Current business achievements

In a series of strategiesGoing the Distance", there are four things to focus on. Namely, increasing customer satisfaction, alignment of business growth and sustainability, becoming a global company through international expansion, and realizing Gojek as a world-class workplace.

When translated into tangible form, the company will strengthen the development of the three pillars of products that are most needed and demanded by customers. Namely, ordering food and drinks, payment, and transportation.

All three are said to be able to score a positive contribution margin in Gojek, although not accompanied by detailed figures. "The three products above are the fulcrum for our next product development," added the Co-CEO Gojek Kevin Aluwi.

Next, increase collaboration with third parties for the expansion of new services, and invest in long-term tools and initiatives that can ensure the best customer experience using the application.

"One of the investments we made was to create [cartographic] mappings such as Googgle Maps for routing faster."

To maintain a healthy business, Kevin stressed the need to focus on growth oriented towards strengthening products to increase customer loyalty. Primarily from a customer base using three or more services Gojek Every month (core users).

From the graph presented, transactions that come from core users in 2018 there were 258 million transactions, in the previous year there were 238 million transactions. This figure is claimed to be higher than Alibaba and Lyft.

"Lots user who return because of our good service quality from partners and applications. So going forward, focus on improving the experience and product. Hopefully with the addition of new features, there will be new activations from users whose numbers can be even higher."

Business achievements Gojek Currently, even without details, it is claimed to have doubled revenue growth in the past year. Transaction growth in the last three years has reached 1100%.

Growth in app download numbers Gojek reached 1.992 times during January 2015-December 2018. Total downloads were more than 155 million times. As for monthly active users (MAU), there are 29,5 million people. There are more than 2 million driver partners, 500 thousand GoFood merchants, and 60 thousand GoLife.

It was also mentioned regarding the plan dual listings in order to achieve a sustainable business. Andre ensures the company will listing in Indonesia and one other country that is still being considered. Regarding when it will be implemented, he is not ready to reveal further, because everything is still in preparation.

"Where is being considered because it depends on market conditions in each country, there will always be one" pros and cons-his. But what is certain is that one listing must be in Indonesia because Gojek It's an Indonesian-owned company and must be able to contribute to the Indonesian stock market," he concluded.