Technology has the ability to empower those in a community to achieve better, faster, and more efficient results. Gojek is an Indonesian start-up that began with a vision to use technology to improve the lives of motorcycle taxi drivers. The company has now flourished into an online ecosystem that connects Small to Medium Enterprises (SMEs) in Indonesia to millions of customers and Big Tech clients. This effort is further improving the lives of millions in the region.
Who is Gojek?
Gojek is Indonesia’s first unicorn company and Super App that provides a multitude of services to thousands of users across Southeast Asia, such as ride-hailing, food delivery, beauty services, entertainment booking and online payments. The company believes there is always a way to solve everyday problems and create a positive social impact using advancements in technology. As SMEs make up most of the businesses in Indonesia, Gojek helps SMEs in Indonesia by creating a digital platform that connects consumers and businessmen efficiently and seamlessly. Overall, the company managed to raise billions of dollars in financing from Google, Tencent, JD.com, Mitsubishi and VISA. More recently, Facebook and Paypal also invested in Gojek’s financial technology division, thereby officially joining Gojek’s list of high profile investors that share the mission of increasing digital economic growth in Southeast Asia.
Connecting SMEs with Big Tech in Indonesia
Indonesia is Southeast Asia’s largest and fastest-growing digital economy. Therefore, Gojek plays an important role in facilitating the growth of the digital economy by acting as a medium of communication between Big Tech companies who want to invest in the region and Indonesia’s SMEs. This results in more sustainable business opportunities.
Gojek helps SMEs in Indonesia by increasing financial inclusion through the digital payments platform on GoPay that is supported by Whatsapp. Digital payments are safer and more reliable for both customers and businesses, yet the majority of SMEs in Indonesia still operate on a cash-basis. SMEs operate this way because they lack access to financial services such as setting up a bank account. This reliance on cash payments only has limited the financial ability and customer reach of SMEs in Indonesia.
However, since its launch in 2015, through its app, Gojek has helped more than a hundred thousands of Indonesian merchants tap into an international market of more than 170 million people across Southeast Asia. In particular, Gojek’s GoPay functionality allows Indonesians who do not have bank accounts to participate in the digital economy by transferring money through Whatsapp, a social media app owned by Facebook that is used by a majority of the Indonesian population.
Gojek’s role during COVID-19
In light of the impact of COVID-19, which rendered consumers unable to physically visit stores, Gojek successfully converted 100,000 traditional businesses onto Gojek’s online platform, saving them from going out of business. By providing SMEs with complete digital solutions and tools, business owners no longer solely rely on in-store sales. Now, they are able to migrate their business online and take advantage of Gojek’s established online platform in light of the pandemic.
In other words, Gojek helps SMEs in Indonesia by promoting digital literacy and skills that will allow them to adapt their business model and increase their chances of reaching more customers, thereby building the long term resiliency of SMEs. Not only does the company play a crucial role in ensuring the delivery of essential food and goods are carried out, but Gojek has also played an active role in helping the Indonesian society by providing relief programs and soft loans for its drivers. For instance, Gojek’s senior management initiated a pay cut to allocate more than $7 million for its drivers and employees that are struggling due to the decrease in demand for Gojek’s services. As a whole, Gojek has helped the Indonesian government manage the COVID-19 pandemic by contributing to the backbone of the Indonesian economy.
It is clear that Gojek’s mission to solve the friction in everyday life is beginning to have a positive impact. It can be seen through the financial aid and support that the organization provides to the SMEs in Indonesia. By connecting Big Tech companies and SMEs, Gojek helps SMEs in Indonesia by giving them a louder voice and increased competitiveness in the regional and international marketplace of the digital economy.
– Mariyah Lia