Go-Jek ventures into the Philippines

  

Philippines go jek

Founded in 2010 by Nadiem Makarim, Go-Jek is an Indonesian hyperlocal transport, ride hailing, logistics and payments startup. Go-Jek is a cutting-edge app used for online transportation, food delivery, logistics, payment and daily services. Beyond a multi-service app, Go-Jek has a social mission, which is to improve the welfare of Indonesian people by empowering people.

The company started in 2011 by offering rides on motorcycle taxis - known in Indonesia as ojek - and since then, the company has expanded into food delivery, house cleaning and massage services. In 2016, the company began car rides. But Go-Jek offer much more than ride-hailing. Since it is free, its mobile payment business, Go-Pay, is growing exponentially along with all the other Go-Jek offerings.
This ride-hailing tech company announced plans to expand into Singapore, the Philippines, Thailand and Vietnam. This announcement comes after Grab acquired Uber's Southeast Asia business operations. As Uber disappears from Singapore, leaving Grab as the sole player, there's a void in the market which has been identified by Go-Jek. Its motorcycle transport services, however, will not be adopted in Singapore since the Land Transport Authority (LTA) had previously stated: “Motorcycles are not allowed to be used for point-to-point transport services, unlike taxis and private hire cars.”
The ride-hailing firm's senior vice president of acquisition and development, Michy Gustavia, announced that the company will launch its own-subscription-based platform for video streaming. The new service will be named Go-Play and it will feature original content crafted by the company's new production house Go-Studios. The platform will stream documentaries, short films, and feature-length works from local filmmakers produced exclusively for Go-Plan, and will be “95 percent Indonesian-focused,” Gustavia said.
A documentary examining the experiences of women drivers who work in the ride-hailing sector is one of the first in-house projects undertaken by Go-Jek. According to Gustavia, this documentary has been submitted to several film festivals.
These are exciting times for Go-Jek, which has partnered with US media outlet Vice. According to a press release issued by the two firms, they are co-producing a film by Indonesian director Joko Anwar. The two firms will also collaborate on original, including a sports documentary.
According to Gustavia, Go-Play will be available on a subscription basis, with daily, monthly, and yearly payment option.
Go-Jek has been open about its plans to become the go-to place for Indonesian consumers' everyday wants and needs. With so many strands in different industries, it doesn't come as a surprise that Go-Jek now wants to lay its hands on video streaming and content production.
“Larger OTT players that are part of a wider group… may be the best poised for own-content production,” Gustavia said.
According to Malcolm Rogers, an analyst at Global Data, over-the-top (OTT) video providers in the region have increasingly been producing their own content.
“Exclusive content deals such as those for sports broadcast rights secure loyal viewers but at high cost,” he explained. “Embarking on content production enables providers to better tailor content to target demographics while offering more cost control compared to buying from major studios.”
It might be a challenge for Go-Jek to get people to sign up if they go ahead with their plan on a subscription model. Iflix's experience might teach Go-Jek something. This Malaysia-based content streaming portal first tried to run a subscription model and according to CEO Mark Britt, this was a strategic misstep. Therefore, Iflix recently branched out into a free service supported by ads.
He said: “We naively believed that the Western entertainment model could easily succeed in emerging markets, and that price would be the primary customer pain point. Looking back now, we realize how superficial that view was.”
Go-Jek, however, is capable of providing a broader offering. Given its wide scope of operations in the market, Go-Jek could prompt users to sign up to a subscription if by doing so they get privileges and discounts across Go-Jek's full suite of transport, finance, and other services. Go-Jek's different strands in the business may also mean that the Indonesian company has more resources to cover costs for producing in-house content.
According to Rogers, video-streaming providers can retain customers by focusing “on niche content with either lower content costs or a dedicated and loyal fan base willing to pay a premium for niche content.”
“Larger OTT players that are part of a wider group of media or technology companies may be the best poised for own-content production,” he added.
 
The Philippine transport regulator apparently recently rejected a request by Indonesian ride-hailing company Go-Jek to offer services in the Philippines, due to restrictions on foreign ownership. It would seem Go-Jek needs to find ways to get around the restrictions.

 

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