Indonesia’s Go-Jek raises US$550mil

  • News
  • Sunday, 04 Sep 2016

A customer (R) paying for a ride with a motorcycle driver from Indonesian start-up Go-Jek in Jakarta. - AFP

Ride-hailing service Go-Jek gets more ammunition in its battle for market share in its home turf of Indonesia where its motorcycle taxis compete with the likes of Uber and Grab.

INDONESIAN ride-hailing service Go-Jek has raised fresh funding of more than US$550mil from KKR, Warburg Pincus and other investors, giving it more ammunition in the battle for market share in the country of 250 million people.

Go-Jek competes with Uber and Grab, and investors in its latest round of financing also included Farallon Capital, Capital Group Private Markets and existing shareholders, it said in a statement on Thursday.

Co-founder Nadiem Makarim, a Harvard Business School graduate, said in April that Go-Jek was in talks with potential investors to raise funds.

Go-Jek, a play on the Indonesian word for motorbike taxis, has become popular among commuters on the traffic-clogged streets of Jakarta. It launched its app in 2015 and has expanded into food deliveries, mobile payments and even cleaning services.

The announcement of the latest fund-raising came days after Uber sold its China operations to bigger domestic rival Didi Chuxing and analysts have said Uber may focus its efforts and money elsewhere, such as in South-East Asia.

Indonesia is a key battleground in the region for ride-hailing firms, which have been driving rates lower to attract more customers in the country with the world’s fourth-largest population and a youthful, Internet-savvy demographic.

Grab, which was co-founded by Makarim’s fellow Harvard graduate Anthony Tan, announced last month that it is teaming up with Indonesian conglomerate Lippo Group to roll out a mobile payment platform in what has become its biggest market.

Grab has raised around US$700mil so far from backers, including Japan’s SoftBank Corp, sovereign wealth fund China Investment Corp and an arm of Singapore state investor Temasek Holdings.

Grab still has a “significant” amount of capital left, Tan said in Jakarta last month.

While Indonesia is ripe with potential, the sprawling archipelago also comes with regulatory and logistical obstacles.

Earlier this year, taxi drivers’ protests turned violent in the Indonesian capital when they called for ride-hailing apps to be banned. Government ministers had also said that technology firms should be subject to the same regulatory and tax requirements as conventional public transport companies. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In News

Exclusive-Vietnam preparing rules to limit news posts on social media accounts - sources
Millions urged to evacuate as Florida Gulf Coast braces for Hurricane Ian
Cuba slowly begins to restore power after Hurricane Ian knocks out grid
Cops record statements of seven over rally in KL
Wider Image: In Mexico, more loved ones go missing. Their families keep searching
No issues for Pairin to be next Sabah head of state, says Tangau
M'sia will work with ICAO member states to expedite recovery of global aviation industry, says Dr Wee
Be wary of those claiming to be 'registered specialists', warns Malaysian Medical Council
Kremlin says military campaign in Ukraine to continue at least until capture of all of Donetsk region
At least 22 killed after two Ugandan army helicopters crash in east Congo

Others Also Read