Go-Jek has announced its intention to enter Singapore this week to challenge Grab, Transportation

Wed 28 Nov 2018 – 18:51

[SINGAPORE] Indonesia's Go-Jek Group plans to roll out a draft of its Behavior Tracking application in Singapore on Thursday, which will allow its rival Grab's home town to face new competition, according to sources close to the project .

The beta application of Go-Jek will be available to a limited number of consumers before extending it to a wider population as tests progress, said users, who asked not to be named because the information is not public.

Many consumers and drivers are eagerly awaiting the entry of Go-Jek after Grab has tightened its grip on the city by agreeing in March to acquire Uber Technologies Inc., a Southeast Asian company. -Est, eliminating its main competitor in the region. The departure of Uber was followed by an increase in the number of user complaints regarding higher prices, delays and failures in customer service. Drivers expressed frustration with the reduction in earnings.

"For Singapore, another competitor can not come fast enough," said Benjamin Roberts, a resident of Singapore dissatisfied with Grab's cancellations and surcharges.

Go-Jek chief executive officer Nadiem Makarim said the company would enter the Singapore market with promotions, without revealing a specific timetable.

"It's time to rebalance the balance and add a lot more favorable policies to consumers and drivers and introduce some competition," said Makarim in an interview with Haslinda Bloomberg TV's Amin at Bloomberg's "New Economy" forum, "a healthy competition – ultimately, the most important factor will not be price competition, but the way we treat our drivers."

Grab and Go-Jek are two of the most valuable startups in Southeast Asia. According to research firm CB Insights, the seizure represents 11 billion US dollars. Go-Jek would have cost about 5 billion US dollars this year.

Some companies have filled the void since the departure of Uber. ComfortDelGro Corp., Singapore's largest taxi company, took the opportunity, as consumers looking for another choice turned to their application. Its shares climbed to 2.51 Singapore dollars on 5 June, up 33 percent from its 2017 low, as Grab and Uber competed for market share with discounts.

MVL Foundation Pte, a world-renowned start-up, has recruited 23,000 drivers and 150,000 drivers since the launch of its application called Tada in July. The service took off mainly by word of mouth.

"We listened to the drivers' reactions from the start and opted for a zero commission for drivers," compared to the 20% commission imposed by Grab, said Kay Woo, founder and CEO of MVL. "Our drivers have become marketing specialists for us."

The international expansion of Go-Jek marks a milestone for a company that started by introducing a mobile application in 2015 to allow people to book cheap motorcycle taxis in Jakarta. Since then, the company has become a household name in his country of origin. In addition to its carpool service, Go-Jek is Indonesia's largest food distribution company and the leading provider of digital wallets.

Anthony Tan, CEO of Grab, said the imminent competition would drive the company forward.

"The question is who can surpass the execution?" It should not be who has the mega P & L to subsidize incredible amounts of promotions, which I'm sure you all hope for, "he said. he said Tuesday in Singapore. "The truth is there will be more competition and that's the only way to stay honest and innovative."

BLOOMBERG