Name: Saad Sajjad

Roll no: Bsmt18025

Assignment#2
Go-Jek
Go-Jek is essentially an Uber, Ticketmaster, Homejoy, Instacart and more all rolled into one. Using
smartphones, customers can book a Gojek to do anything for them. PT Aplikasi Karya Anak
Bangsa, doing business as Go-Jek, is a Southeast Asian on-demand multi-service platform and
digital payment technology group. Go-Jek was first established in Indonesia in 2010 as a call
center to connect consumers to courier delivery and two-wheeled ride-hailing services.
Indonesia’s capital, Jakarta, is a massive, sprawling metropolis with a population of almost 10
million people. It has been ranked as the third most congested city in the world and is often
criticized for its lack of a well-functioning public transportation system.
People in Jakarta often take a motorcycle taxi, or ‘ojek’, which typically carries one passenger
over short distances within the city due to the traffic congestion there. Taxicabs and ride-hailing
services such as Uber and Grab are also available, and although they are safer than ojeks, they
are slower and more expensive.
This has led to a bloody red ocean of cut-throat competition in point-to-point transportation
within Indonesian cities. Customers who need to travel fast rely mostly on ojeks, which offer a
risky and inconsistent service, whereas, Uber and Grab offer comfort and safety. The industry
seems trapped in a trade-off between comfort and safety versus speed

Industry Strategy Canvas

10
8
Scoring

6
4
2
0
Go-Jek

Motorcycle Taxi
Factors of Competition
Go-Jek, the motorcycle ride-hailing service and technology startup, is a case in point. In 2015 it
launched a mobile app that connected people directly with Go-Jek drivers, thereby offering
exceptional new utility to customers. Go-Jek has been growing exponentially ever since and now
has a fleet of more than 200,000 vehicles. It has also evolved into an on-demand mobile platform
that offers a wide range of other services such as mobile payments, shopping and food delivery.
Today it operates in 50 cities across Indonesia. It is Indonesia’s first unicorn company.
It created a Blue Ocean strategy by applying the Four Action Framework.
Four Action Framework:

Eliminate Reduce

 Price negotiation  Inconsistent service

 Waiting time

Raise Create

 Security  Non-cash payment

 Price transparency  Emotional attachment
 First/last mile availability

Go-Jek eliminated price negotiation. This was a major pain point for ojek customers and refusing
noncustomers as it left the impression that drivers were being deceptive to charge higher fares.
The utilization of geo-localization algorithms allowed Go-Jek to offer consistent and
predetermined fares for rides that customers could see before ordering the service.
Go-Jek reduced inconsistency in service by hiring experienced drivers and introducing training
programs to ensure safe driving practices. By showing the real-time location of nearby ojeks
available to customers from their pickup point, the uncertainty in the waiting for customers was
also reduced. Along with the communication with the drivers through their smartphones, Go-Jek
could send the closest ojek to a customer, reducing the overall waiting time.
Go-Jek raised security for its riders. Go-Jek added a layer of security to the service by introducing
a system that incorporates driver identification and vehicle traceability. A Go-Jek ride is much
safer and more secure for customers than conventional ojeks, now that the entire journey is
tracked through the app. Also, in case of an accident, Go-Jek provides an insurance policy to the
customer. By predetermining prices, Go-Jek also raises price transparency for buyers. A Strategy
introduced by Go-Jek is to provide its drivers with a branded green jacket so they can access
restricted areas in front of hotels and airports.
Go-Jek uses its mobile platform to create options for non-cash payments – something not offered
by conventional ojek or taxi services. In addition, Go-Jek positions itself as a national brand – the
new and cool Indonesian start-up – to create an emotional attachment with the Indonesian
customer. By wearing green jackets with the Indonesian flag embroidered on the front, along
with green helmets, Go-Jek drivers stand out in public. Go-Jek brands itself as a national
champion that Indonesians can feel proud of. This was a smart move that was hard for
international competitors to mimic.
Go-Jek is not only creating high value for buyers but also for its drivers, who report an increase
in income and often see themselves as partners of Go-Jek rather than employees. Drivers also
get access to health and accident cover, financial services and insurance – services not available
to conventional ojek drivers.

References:
Freischlad, N. (2017, June 9). Go-Jek is beating Uber and Grab at home, claims CEO Nadiem
Makarim
.Retrieved from Tech in Asia: https://www.techinasia.com/gojek-beating-ubergrab
Septiadhi, D. (2016, August 12).
https://www.entrepreneur.com/article/336307
https://www.academia.edu/37806623/The_Growth_Strategies_of
https://www.businesstimes.com.sg/keywords/go-jek
https://www.blueoceanstrategy.com/blog/how-go-jek-is-creating-blue-ocean-one-of-worlds-
most-congested-cities/
https://asia.nikkei.com/Business/Startups/After-WeWork-flop-Indonesia-s-Gojek-eyes-dual-
listing