​ ​Marketing Management

Gojek in Indonesia 
Riasky Widar Dewanti​ ​- 29320087 
Bella Nadhifah Agustina - 29320088 
Fachry Arrazy - 29320090 
Fadhila Afifah -29320093 
Reyner Farras - 29320097 
Kevin Apriano Mulia - 29320101

RISE OF GOJEK

Go-Jek, a unicorn startup that revolutionized the business of informal transport and logistics, One of the
fastest-growing and most visible tech startups in Asia was in the booming towns of Indonesia. Go-Jek
provided on — through its mobile app connecting motorcycle taxis, referred to as ojeks, with customers,
Transportation, distribution, shopping, and a host of other personal services are needed. The Go-Jek fleet
braved traffic jams every day and navigated the impenetrable vehicle jungles of Indonesian cities nimbly.

When he served as a consultant for McKinsey and Co. in Jakarta, founder Nadiem Makarim conceived
Go-Jek. He always resorted to taking the ubiquitous and inexpensive ojeks to get around Jakarta's
notorious gridlock despite getting his car and chauffeur. While he was more than appreciative of the
service that these motorcycle taxis offered, the inefficiency of ojeks struck him. Ojek drivers usually spent
eight to 10 hours waiting on roadsides, only to pick up an average of only six passes. Nadiem founded
Go-Jek in August 2010. The company initially had only a call center and 20 drivers, which Nadiem was
struggling to keep afloat. Operations were based on radio technology for the first three years; workers
would call and deploy ojek drivers if ride orders were placed successfully. On Go-Jek moved to a digital
technology platform on January 7, 2015, with the help of a private equity investor, and launched an
Uber-like mobile app to connect customers to ojek drivers directly.

Following its transition to digital media, the idea of Go-Jek caught on and spread like wildfire. From
March to October 2015, Go-Jek 's monthly orders rose by over 98 times. Poor traffic conditions in
Indonesian cities could be due to the enormous demand. With nearly 31 million people residing in the
greater Jakarta area and 5.5 million cars, Jakarta, the capital city, is the second most populated urban area
in the world. Go-Jek has filled a void in the market created by Indonesia's weak transport infrastructure.
Nadiem recognized the need for a service that would relieve the pressure of being trapped for hours in
traffic and allow individuals to continue their lives. Furthermore, Go-Jek also provided straightforward
fare pricing, removed the hassle of negotiating fair rates, and boosted ojek drivers' profits. The rising
success of Go-Jek occurred at an appropriate time when Indonesia was rapidly transforming into a digital
country.

Nadiem assembled a team of highly qualified managers with both overseas experience and local expertise
with his previous experience in tech startups and tasked them with building core skills and accelerating
the growth trajectory of Go-Jek. The concept was a crucial aspect that Go-Jek instantly ramped upon. And
its backend structures and technical infrastructure architecture. Given the small tech talent pool in
Indonesia, in February 2016, Go-Jek acquired two Indian startups, C42 and CodeIgnition in Bangalore, to
deal with scalability challenges. After the purchase, all four co-founders of the startups were brought into
the management team. Go-Jek began actively hiring and ojek drivers to scale rapidly. Go-Jek conducted
mass recruiting at Jakarta's Gelora Bung Karno Main Stadium from 11 to 14 August 2015, hiring 16,000
new drivers. To emphasize equality, Go-Jek called them partners. Driver-partners practically had equal
 ​ ​Marketing Management

rights with Go-Jek, unlike a typical employer and employee partnership in which the employer decides
the SOP and almost everything else.

THE PROBLEM FACE BY GOJEK

Go-Jek's entrance disrupted the traditional ojek industry. The lack of clear regulations for new
ride-hailing services had generated unhappiness among the incumbent ojek operators and drivers.
Standard ojek riders who did not join Go-Jek saw a substantial reduction in their incomes. The series of
events resulted in the Ministry of Transport's ban on Uber, Snatch, and Go-Jek on 18 December 2015. On
the same day, however, Indonesian President Widodo rebuked the ban. Moreover, told reporters that
public health creativity should not be restrained.

The need to handle the Go-Jek drivers' expectations was another problem. With more individuals coming
on board as drivers of GoJek, some drivers It was concerned with chasing revenue that jeopardized the
quality of services. Go-Jek has started optimizing cash burn and improving its bottom line. During this
time, it was effective in reducing total subsidies while still maintaining steady volume growth. The rate
earned by its drivers, however, fell. Also, Go-Jek's drivers had to maintain a 70 percent acceptance rate to
earn a bonus. An amount that many drivers felt was very difficult to reach every day. Many
uncontrollable variables could cause order cancellations, and thus the strict expectation was seen as
unreasonable by some drivers. It ignited a protest at Yogyakarta's Go-Jek office. The shift in
compensation exacerbated negative feelings among some drivers as they struggled to cover the cost of
maintenance of smartphones, fuel, and motorcycles. At the same time, the drivers' achievement
requirements were becoming more strict.

Another problem occurs, Go-Jek faced intense competition during its swift expansion. GrabBike, a
motorcycle taxi service similar to Go-Jek, was introduced in Jakarta in August 2015. Drivers from
GrabBike wore distinctive pea-green. Helmets and trousers that closely mimic the uniforms of the Go-Jek
drivers. GrabBike was part of the well-funded GrabTaxi, which efficiently spread to the Southeast Asian
market. In 2016, GrabBike first appeared in Ho Chi Minh City and Hanoi, making the capital of Indonesia
its third trial destination. GrabBike gave free rides in Jakarta from August 9 to August 31 during the
launch of its service. GrabBike registered more than 8,000 rides within just a week of its beta launch.
Operating on the same platform as GrabTaxi, GrabBike gave anyone who wanted to be able to choose
between taxis and ojeks a seamless experience, meeting all transport needs in a single app.

CONCLUSION

Gojek is the leading technology company providing on-demand services in Southeast Asia because it has
succeeded in changing and doing things that benefit the broader community by transforming the
acceleration of financial inclusion and the digital economy in Indonesia. With brilliant ideas and making
online motorcycle taxis a commodity. Because of the tight competition Gojek must always innovate and
must always maintain service quality because service quality affects customer satisfaction, and consumer
satisfaction is a significant factor for the existence, continuity, and development of the company.