Go-Jek confirms entry into Singapore's ride-hailing market
After months of speculation, Go-Jek has finally put its money where its mouth is.
The Indonesian ride-hailing company confirmed in a press release yesterday that it will be entering the Singapore market within the next few months.
While this will be welcome news to commuters and private hire drivers, experts The New Paper spoke to said Go-Jek will not have it easy against rival Grab.
Go-Jek will invest US$500 million (S$671 million) into its international expansion that will also see it move into Vietnam, Thailand and the Philippines.
Rather than go it alone, Go-Jek said it will partner with local teams and take on an advisory role, providing operational and development experience.
The company will start with ride-hailing but ultimately aims to bring in other services on each of its platform in the four new markets.
Go-Jek currently offers a total of 18 different services in Indonesia, from online payment, food and parcel delivery to on-demand massage and beautician services.
"Consumers are happiest when they have choice and at the moment, people in Vietnam, Thailand, Singapore and the Philippines don't feel that they're getting enough when it comes to ride-hailing," said CEO and founder Nadiem Makarim. "We hope our presence will provide the welcome competition markets need to thrive."
It remains to be seen what kind of impact Go-Jek will have in Singapore in the wake of Uber's departure.
A mature market, tight supply and Grab's dominant position here will make the competition fierce, experts say.
Much will depend on Go-Jek's financial muscle.
"The truth is that new private-hire entrants will have to provide some attractive incentives both to the drivers and the commuters so that they can get market share," transport researcher Professor Lee Der-Horng said.
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