Gojek breakthrough for the Indonesian society

For Nadiem Makarim, who is an MBA graduate from Harvard Business School, riding a motorcycle-taxi has become his preference to battle with the Jakarta traffic. In Indonesia, this hailing-ride system which is called “Ojek” its already become a culture for Indonesian people. This service provides by a person who is driving his own personal motorcycle called by “Tukang Ojek” or “Ojek driver”, to take only one customer by pay a certain amount of tariff. Although it is not literally legal transportation, it helps a lot for people who need a fast solution for short-distance travel.

Nadiem, who feels engage with this Ojek system, start to look that there is a particular flaw with this business process. There is unbalance between supply and demand service that happens all the time. Firstly, Ojek used to only can be accessed in a certain spot places, which a couple of Ojek driver stand by waiting for its customer. Secondly, even after comes to this Ojek spot, there is no certainty that the ojek is available because there’s a probability of the unbalance between customer and Ojek that operate at that time. At that time to solve this problem, Nadiem comes with the solution, what if he can connect the customer with the Ojek driver so the business process will become more productive. So in 2010, he builds “Gojek”, a call centre company with also consist off 20 Ojek partnership drivers that specially handle Ojek request by phone; instead, the customer comes to find the Ojek driver, the Ojek driver will come to the customer. Practically is the same system that Uber business process, the different is, Uber start with the car, Ojek is by motorcycle.

In 2015, Nadiem changed Gojek business from a call centre into a startup company. By using a mobile phone application that can be accessed as long, there’s an internet, with the first core service is motorcycle-taxi, logistics, and food delivery. By four years since the Gojek applications launched, it becomes a super app that has been download by 125 million times and has been partners with 2 million+ drivers.

Nadiem succeeds to change millions of Indonesian people to become adept with digital development world by using Gojek app. Nowadays, Gojek app has to offer about 18 services, including online payment, daily needs, entertainment. The company estimated valued by $10 billion according to Bloomberg, and become the first decacorn company in Indonesia. So how is this super app Gojek impact on Indonesia social and economy?

Source : Gojek.io

In 2018, Lembaga Demografi of University of Indonesia published research about Gojek impact on Indonesia economy. This research is concluding couple aspects of contributions.

Impact on Indonesian Economy and Society

Since the launch of the super app Gojek has attracted many people to join with their partnership scheme, not just people that already experience being an Ojek driver but also people from the different work field. In result, Gojek contributed IDR 55 trillion (US$ 3.85 billion) to the Indonesian economy in 2018. The response of the public about Gojek existence its also positive, 89% Gojek customers that had been surveyed said that this company brings good impact to the society in contrast 78% of customers also said that it will make an adverse effect if Gojek stops being operated.

Impact on Gojek driver partners

Gojek has also been known as a revolutionary in open new space of jobs and decreasing the unemployment rate in Indonesia. With the 75% driver-partner is in age between 20-40. Primary benefits felt by driver partners from partnering with Gojek are they has flexible working hours, source of income for family, and havem more time with family. They were also confident that they could provide for their families adequately.

Impact on Gofood Micro, Small, Medium Enterprises (MSMEs) partners

Gofood has become an entry point into the digital economy for Micro, Small, Medium Enterprises (MSMEs). Gofood helped its MSME partners increase their transaction volume and customer base. For example, a restaurant that partners with Gojek will be found by customers that install Gojek app without having to come to them. It is also an opportunity to build an image business because other customers can see their review from another customer.

This radical of innovation is the game changer in Indonesian transportation serivces, it is something has never done before and a big leap to improvement (Bessant, 2018). For his innovation, in May 2019, Nadiem was the youngest figure from Asia to receive the 24th Nikkei Asia Prize for economic and business innovation. In October 2019, Nadiem left his position as Gojek CEO to become the minister of education and culture of the Republic of Indonesia in President Joko Widodo cabinet.

References

Bloomberg. (2019, April 6). Go-Jek Joins ‘Decacorn’ Ranks With $10 Billion Valuation. Retrieved from: https://www.bloomberg.com/news/articles/2019-04-06/indonesia-s-go-jek-joins-decacorn-ranks-with-10b-valuation

Gojek.io. (2019). Retrieved from: https://www.gojek.io/superapp/

GOJEK. A Super App. (2019, February 10). [video]. Retrieved from: https://www.youtube.com/watch?time_continue=83&v=Tn4MGnTkF8c&feature=emb_logo

Lembaga Demografi Faculty of Economics and Business Universitas Indonesia (LD FEB UI) in collaboration with GOJEK Indonesia. (2019). GOJEK’s Impact on the Indonesian Economy in 2018. Retrieved from: https://ldfebui.org/wp-content/uploads/2019/11/Lembaga-Demografi-University-of-Indonesia-GOJEK%E2%80%99s-Impact-on-the-Indonesian-Economy-ENG-Nov-2019.pdf

John Bessant. (2018, December 22). [Video] Module 2 Film 1 Incremental and radical innovation. Retrieved from: https://www.youtube.com/watch?v=-FufyUpPMjA

Kompas. (2019, October 23). Cerita Awal Mula Mendikbud Nadiem Makarim Mendirikan GoJek. Retrieved from: https://tekno.kompas.com/read/2019/10/23/12010087/cerita-awal-mula-mendikbud-nadiem-makarim-mendirikan-gojek?page=all

Nikkei-events. (2019). Nikkei Asia Prize. Retrieved from: http://www.nikkei-events.jp/asiaprizes/winner/index.html

Techcrunch. (2019, October 21). Gojek founder and CEO Nadiem Makarim resigns to join Indonesian cabinet; Soelistyo and Aluwi to be new co-CEOs. Retrieved from: https://techcrunch.com/2019/10/20/gojek-founder-and-ceo-nadiem-makarim-resigns-to-join-indonesian-cabinet-soelistyo-and-aluwi-to-be-new-co-ceos/