GOJEK

TRANSPORTATION REVOLUTION
& SOCIAL CHANGES

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 Brief
Introduction to
the Case Region
 The Jakarta Metropolitan Area (Jabodetabek) is a large-
scale metropolitan region which consists of a special
district capital (city of Jakarta) and eight local
municipalities.

In this region, the

motorcycle is a relatively
popular mode of
transportation. In fact, the
With a population of number of registered
approximately 28 million motorcycles has
inhabitants and gross increased more than four
regional domestic times within a period of
product estimated at ten years, from 2000 to
more than US$ 100 2010.
billion
 Based on the previous mentioned data, we
can safely conclude that the use of the
motorcycle is much more widespread
compared to the use of automobiles.
Moreover, a motorcycle ride
consumes significantly less time
than a car drive. In extreme traffic
situations, travelling with motorcycle
(including ojek) may take only half
as long it would take when travelling
by car (including taxi) for the same
distance.
This comparison further
demonstrates that the ojek
occupies an important place in
the realm of public
transportation in the
metropolitan area of Jakarta.
 In the beginning, the
The Use of ICT in the company set up a call
Management of Ojek. In centre and hired the
2011, an attempt to first 20 drivers who
structure and standardize
would then become
ojek operations was made
through the recruiters for
establishment of Gojek, a additional drivers. But
company whose mission it wasn’t until it
was to provide customers launched its Gojek app
with a fleet of trusted that the company began
ojek drivers. to flourish.

As of August 2015, 10the company was in the

process of recruiting 16,000 new drivers
 Supported
Transformations in
the Use of Ojek
Changes in the Economic and
Business sector
 The first and primary change in the ojek business model lies in the
standardization and structure of the ojek operation. By providing ojek
drivers with a platform to acquire customers and determine their exact
location, along with other functionalities, the company earns 20% of the
total cost of each ojek trip.

With the use of Gojek the transformation

tools and applications, in their business
Gojek drivers become model includes an
more productive and expansion of their
have more control over stakeholders, a
their work time, but it is shift in the use of
the ancillary services ojek, and a new
offered by the company creation of value.
that garnered the most
interest.
Changes in
Employment
Mode
 one of the benefits of Gojek is to eliminate the
idle time that used to account for 70% of the
ojek driver’s work time.

Instead of waiting The concept of “just-

for customers to no intime labour” is
relevant in this context.
avail, or being By employing “just-in-
trapped in traffic time labour,”
congestion, Gojek employees are able to
drivers make better manage their time
use of their time according to their work
pace and task’s
when not at work requirements
delivering (flexibility).
customers or other
goods.
 Instead of spending time idling and smoking at the informal ojek
pools as ojek drivers are often observed doing, Gojek drivers can
spend more time with their family or even practice other
professions.
They benefit
The employment shift also establishes the
by earning position of ojek driver as a profession, that
side income is, a paid employment (in the form of a
from the partnership) with social benefits.
flexibility
offered by
Gojek’s “just-
in-time
labour.” One
of them is
even thinking
of eventually
leaving his 16
 Changes in
Governmental
Policy
The motorcycle taxi or ojek has never been legally defined as a
means of transportation; consequently, “ojek driver” was
considered an informal way of earning income. Even though
ojek had existed for a long time in the case region, it was never
subject to any regulatory measures.

The income earned the formulation of new

from driving ojek was policies on ojek as a means
not even taxed. of transportation becomes
increasingly pressing

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✘ Towards the end of 2015, the escalated
controversy manifested itself in a short-lived ban
issued by the Ministry of Transportation that
was later cancelled the following day due to an
intervention by the President of Indonesia16
17. The discussion is still ongoing at the time of
writing. However, we can make a conjecture that
all of these discussions regarding governmental
policy reflect a new social discourse that is
promoted by the widespread use of Gojek and
other mobile ojek hail applications.
 Emergent Issues
Towards the end of 2015, the escalated
controversy manifested itself in a short-lived
ban issued by the Ministry of Transportation
that was later cancelled the following day due
to an intervention by the President of
Indonesia16 17. The discussion is still ongoing
at the time of writing. However, we can make a
conjecture that all of these discussions
regarding governmental policy reflect a new
social discourse that is promoted by the
widespread use of Gojek and other mobile ojek
hail applications.
This conflict may relate to the ability
and speed of technology adoption.
Some of the conventional ojek
drivers are at an age that makes it
difficult for them to adapt to rapid
change. Especially since Gojek and
similar companies impose age
restrictions (max. 55 years old) for
job applicants.
Conclusion
 Use of ojek through a mobile application Technology component
Mobile ojek hailing application Customers Mobile Gojek driver
application Ojek drivers Other enterprise systems/ dashboards
Entrepreneurs Social component Bridging digital divide Ojek drivers
and customers New Business model, added business and services
Entrepreneurs Ojek as a standardized and structured service Ojek
drivers and entrepreneurs New policies on ojek management
Government.