Gojek and Garuda Indonesia Prepare an Intercity Logistics Platform

Gojek and Garuda Indonesia are currently finalizing a partnership between the two parties for logistics solutions. To Reuters, Garuda CEO Ari Ashkara said he hoped the agreement would be concluded in the next few months.

Through this scheme, consumers will be able to use the application Gojek to send goods between cities in Indonesia using the Garuda fleet. This solution will speed up inter-island delivery of goods, which has been a logistical scourge in Indonesia, which has more than 17 thousand islands. Apart from Garuda, its competitor, Lion Air, has also started this initiative, including cooperating with the marketplace platform, through Lion Parcel.

Gojek recently secured its first round of Series F funding which is said to have boosted the company's valuation to $9 billion (over 120 trillion Rupiah). Garuda as a public company, based on today's stock closing, has a market capitalization of "only" 12,74 trillion Rupiah.

The logistics market is a very attractive market in the current e-commerce era, especially since Indonesia is an archipelagic country with a stretch of more than 5000 km. While PT Pos Indonesia is struggling to maintain its business and market, more and more new logistics companies based on technology are emerging for their operations.