GOJEK is an Indonesian hyperlocal transport, logistics and payments startup founded in 2010.

It
aims to improve the welfare of workers in Indonesia’s vast informal sector. It is also the first
startup of Indonesian origin to be classified as a transport system after closing a round of funding
in August 2016. GO-JEK's fleet now exceeds 400,000 drivers and includes motorcycles, cars and
trucks. People in 50 cities in Indonesia can now hail a ride via GO-JEK.

Strategic Analysis

External

SLEPT analysis:

Social: there are two key points that make Gojek giving social impacts to its environment. First,
‘Job creation’ factor, Gojek creates job opportunities to thousands partner drivers in several cities.
Second, ‘improve accessibility to life changing opportunities’, Gojek gives easier way to public
transport user to access private public transportation within the appearance of Gojek. Gojek also
changes the consumer behavior by their services which available on its app.

Legal: Gojek impacts the changing of public transportation rules in Indonesia. Gojek operated
more freely at the beginning of its operation. But today, Government makes new regulation
according to the phenomenon of Indonesian online public transport such as permit, fares, etc.

Economic: Gojek open new job opportunities that easily can be accessed by the society, everyone
can apply to be the Gojek Driver, and it reduces the rate of unemployment in Indonesia which is
impacting to people’s purchasing power and inflation rate of Indonesian economy.

Politic: Gojek gives and also get political impacts to and from government, especially when big
mass demonstration from conventional public transport driver happened. It affects and changes the
government’s policy about public transportation, especially the online based transportation, and it
directly affects theh Gojek operational activities.

Technology: Gojek is being the pioneer of online public transportation that operates in Indonesia.
Gojek also becomes the pilot model of multiservice platform in Indonesia, because of its services
that provides on that app.

Internal
 SWOT Analysis

Strength: As a pioneer, GoJek has a wider advantage of network driver compared to Grab Bike.
As a local startup, GoJek has high brand recognition and easier understood by the local market.

Weakness: The GoJek’s strength caused a huge capital expenditure. GrabBike is the right
example. GrabBike is a strong competitor because they can manage spending money for incentives
and promotions. At this time, they only serve the transport segment but they can also change in
the future.

Opportunities: Beyond GoJek delivery service, GoJek can implement promotional and
advertising systems, so their food partners can promote their products well. Courier service is
another area that GoJek needs to focus on.

Threats: The main threat comes from government regulations, because their businesses do not
have rules. Competition in this Industry is also a concern of GoJek.

Exit startegy
Launched Go-Pay service in Go-Jek app by the middle of this year. GoJek is ambitious to make
Go-Pay a future online payment platform that connects people to everyday needs through the
digital world. GoPay's role will be even bigger, not just for Go-Jek, but the whole digital
economy Go ' can-eat food, e-commerce transactions, through Go-Pay, GoJek also has a special
strategy for penetration Go-Pay, i.e. through the driver. Currently, hundreds of thousands of Go-
Jek drivers are invited to collaborate further to introduce Go-Pay with agreed compensation.
Users can put money into a Go-Pay account or add a top-up alias balance through the driver. The
way, when ordering and using the service Go-Jek, the user simply give cash money to the driver
with the nominal expected to be filled into account Go-Jek Pay, users who already feel the
practical use of Go-Pay would be addicted and no longer cash transaction. Known, Go-Jek about
the next five years will cooperate with traveloka because it allows everyone with reservations
that ditraveloka can pay with Go-pay example hotel, aircraft.

Strategic Implementation
Go-Jek have changed Indonesia’s capital. Most would say for the better. Rides are readily available and
come right to the doorstep. We can choose to hop on the back of a motorcycle to beat traffic or get into a
comfortable car and it is also cheap. Using GoCar usually comes out well below a regular taxi fare.
Motorcycle rides, such as with GoJek, come with a very low fare because the startups are subsidizing
them to win customers.
Issues highlights :
1. FARE REDUCTION

o The drivers protested against rate cuts Go-Jek imposed on some of its services, which saw the
standard fare for the first seven kilometers reduced to Rp 12,000 from Rp 15,000 previously. The
drivers were lured with a rate of Rp 4,000/Km in 2014, but it has now been reduced to Rp
2,000/Km

2. UNFAIR POLICY

o Gojek management as being unresponsive to drivers' complaints, especially those regarding the
performance assessment that is required to receive the bonus of Rp 140,000/day. Most of drivers
assumed that the company tried to eliminate their bonuses. To receive the bonus, Gojek drivers are
required to collect 14 points and 50 percent of targeted performance, adding that points are counted
according to the kilometers they have traveled and performance is calculated based on the number
of passengers they pick up, but the fact the drivers cannot ever reach 14 as required by company.
When drivers points reach 13, the system suddenly stops.

Prediction

At the moment GoJek seem to have great future with expanding market and customer base. But
there are some improvement and future target that they have to undertake to ensure that the
company maintain its positive momentum.

Improvement for gojek:

Customer service :Their customer service call center is hard to reach and not informative
enough.

Application design : Especially regarding the booking method. Compared to others the booking
response is slower and this might push some customer to the competitor

Payment system : They should introduce credit card payment system as soon as possible.

Number of driver : GoJek needs to take note the number of driver in an area so they do not
have too much or not enough driver in an area.