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There are endless possibilities of where the new round of funding will take them. Here’s our prediction
This weekend, the Wall Street Journal reported that global investment companies KKR & Co. and Warburg Pincus LLC are considering to “take the ‘Uber bet’ to a new extreme as they consider an investment” to Indonesian top ride-hailing app Go-Jek.
According to the report, Go-Jek is going to raise up to US$400 million that will put the company’s valuation to US$1.2 billion.
Reports of Go-Jek raising a new round of funds have circulated since May, when Go-Jek CEO Nadiem Makarim denied a Reuters report about the company having run out of funds to subsidise its tariffs.
However, DailySocial reported that in January, Go-Jek has secured more than 340,000 bookings each day. Despite being seen as a “money-burning” attempt, the subsidy reported to have succeed in pushing for traction growth for up to 12 per cent.
Also Read: Can Uber survive against Go-Jek, Grab, and the Government?
So what is in store for the ride-hailing app company? To predict it, let us see what they have done so far in 2016.
In February, the company made headlines with the acquisition of two Indian startups C42 Engineering and CodeIgnition to strengthen its technological core, by opening an office in Bangalore and local talent acquisition.
Together with fellow ride-hailing app companies Uber and Grab, Go-Jek found themselves in the center of controversy when conventional taxi drivers performed strike to protest against such businesses.
The company also announced a set of new features with its revamped app, launching Go-Car and pushing stronger promotion of its mobile payment feature Go-Pay.
The March controversy took on a surprising turn when Go-Jek announced an upcoming partnership with taxi company Blue Bird, which drivers took the streets to protest against Go-Jek earlier. There were no detailed mention on the value of the partnership, but it is mentioned to involve “technology, payment, and promotion aspects.”
Also Read: Go-Jek and LINE team up to help users book their ride
So these are our predictions of what is coming up soon from Go-Jek:
1. The company will continue on subsidising its tariff to maintain its affordable price range.
2. Stronger promotion for the use of Go-Pay.
3. Expansion to more Indonesian cities.
4. Finalisation of the outcome of its partnership with Blue Bird – a new taxi-hailing feature, perhaps? Or is it possible that Blue Bird’s newly improved mobile app –which was launched in May– is actually the result of this partnership?
5. New office to complete its existing eight offices in Jakarta and Jogjakarta.
Go-Jek app (right) and the new Blue Bird app puts side-by-side
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