Promotions, Partners and Product Experience: Go-Jek President Presents Plan to Break Grab's Monopoly



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SINGAPORE: Go-Jek and Grab may have mostly green-colored logos, but as the two companies compete for a larger share of the helicopter market in Singapore, Go-Jek's president, Andre Soelistyo, is convinced that he has a competitive advantage. the range of services that he can offer.

In Indonesia, Go-Jek customers can also make online payments, as well as order food, shopping and even massage.

"I do not think that the colors of logos make the difference to gain market share. Many tech companies (with logos) are green anyway, "he said with a chuckle.

Mr. Soelistyo was optimistic when he spoke with Channel NewsAsia on Thursday, November 29, a few minutes after the launch of the beta version of its Singapore application by Go-Jek, which launched the deployment of its services throughout the island.

"This sector was not destined for a monopoly situation … There is not a single player on the market," he said.

"When there is a player, the service levels go down. They stop listening to consumer complaints, so we think that being another choice would be our biggest strategy, "added Soelistyo.

Passengers and drivers hope that Go-Jek's entry will rejuvenate competition in the Singaporean market after Grab acquired Uber's Southeast Asia business in March. For Grab users, the takeover resulted in a sharp decrease in the number of promotions and a reduction in driving incentives.

As part of its attempt to gain market share, Go-Jek is expected to attract new users with promotional codes for point-to-point moves in the initial phase.

At launch, the company announced that, as part of its strategic partnership with DBS Bank, DBS and POSB customers in Singapore would receive 5 credit vouchers worth $ 5. Singaporeans for each of their first two trips.

And Mr Soelistyo hinted that further reductions of this type would be expected in the coming weeks.

"In the early days, consumers will (have to) become familiar with our product," he said. "There will be promotions because, in the beginning, there will be problems, there will be operational challenges and obviously, we will have to compensate."

Mr. Soelistyo warned, however, that the promotions may not be as aggressive as they were at the time Grab and Uber started in Singapore. He pointed out that commuters are better informed about cabin transportation. Go-Jek will therefore focus on creating a differentiated product rather than "building the market".

"But we hope that pricing is not the deciding factor for choosing one over the other," he said. "It's more the one with the best product experience – if it meets the needs of people who want to move very quickly and if we can really create that experience."

The day that Go-Jek launched its beta, Grab Singapore Lim Kell Jay's manager issued a statement in which he said the company "welcomes the competition".

READ: grab users' rail against the revised reward system; lament the lack of competition

"We believe that more choice in the marketplace enables innovation and promotes a higher level of service in the industry. Grab appreciates our Singapore customers and is constantly looking to improve their experience and create more value for their daily transactions in transportation, payment, food delivery and parcels, "he added.

Mr Lim also said Grab remains focused on building his vision of becoming "the daily superapp in Singapore".

COMING SOON: GO-FOOD, GO-CLEAN AND GO-MASSAGE?

Mr Soelistyo pointed out that, ultimately, Go-Jek had to focus on himself, his comparative advantage over Grab being his unique platform.

The Go-Jek application in Indonesia offers around twenty user services, including the Go-Food instant food delivery service, Go-Massage personal masseuse service, Go-Send on-demand messaging service and Go-Clean professional cleaning.

He asserted that Go-Jek's experience in providing such services for four years since its inception in Indonesia gives the company a competitive advantage over other "imitators".

"When we think about Go-Jek's trip, we were already a platform from day one. Some of our competitors recently announced (this) and really copied us during this move. But in reality, we started early, "said Soelistyo.

A Go-Jek runner shows boxes of food to his client in front of a booth in Jakarta.

A Go-Jek runner with food for his client. (Photo: Reuters / Beawiharta)

"So we know everything about the products, features and functionality of high quality products to create a different experience for merchants, consumers and drivers, which we are trying to offer in Singapore", was -he adds.

But he said Go-Jek must first ensure that his basic offer – tour-hailing – seduces Singaporean commuters, before expanding to other services.

"If it's good, the user will connect to our system. It then allows us to gather feedback – what else in their daily lives do we want to contribute, right? "Said Mr Soelistyo.

"This could be to deliver their favorite hawker food, this could be a logistics for their online shopping or lifestyle services like massages or cleaning products."

To break into the market and succeed, he also noted that Go-Jek can not do it alone and needs to partner with other companies.

READ: Go-Jek goes, but does he leave his riders behind?

Mr. Soelistyo cited the example of how Go-Jek in Indonesia was working with eleven banks and even the local taxi company Blue Bird to provide a comprehensive platform to its users. Its electronic purse service, Go-Pay, is the fourth largest in Indonesia, thanks to a collaboration with Bank Mandiri, Bank Central Asia and Telkomsel, a public telecommunications company.

"The approach must therefore be the same (for Singapore). This trip can not be completed with one company, it must be an ecosystem of partnerships, "he added.

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