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Gojek reveals its biggest source of income

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Gojek reveals its biggest source of income

Gojek reveals its biggest source of income

Gojek said their biggest revenue came from Gopay and GoFood payment transactions. Gojek's online transport services account for less than a quarter of total Gojek transactions.

Gojek CEO Nadiem Makarim said that food and cash delivery services currently generate US $ 2 billion (Rs 28.7 billion) and US $ 6.3 billion (Rs 90 billion) per year. year.

The company plans to reap the benefits of food and financial distribution services. Gojek even mentions that there is no need for its online transportation services to provide benefits if the company is going public.

"Gojek's strengths are very strong, we do not need online transportation services to be profitable first," Gojek CEO Nadiem Makarim said in an interview with Nikkei Asian Review on Wednesday. / 5).

"Online transport [...] accounts for less than a quarter of Gojek's total transactions (GMV), food is very important and payments are even bigger," he said.

"We are developing this activity on the premise that online transport will only balance its profitability (equilibrium point)," he continued, explaining that this was their baseline scenario.

So, if online transportation services can generate profits, Gojek's scenario is optimistic. This was revealed by Nadiem in response to the many doubts regarding the model of online transport service. Especially when Uber started selling its first shares this month.

Previously, Nadiem had revealed that in 2018, Gojek had recorded a total of transactions reaching 126,000 billion IDR. But he did not reveal the details of Gojek's income. The total number of these transactions (GMT) has increased 3.5 times in two years between 2016 and 2018. Gojek says that the number of such transactions is greater than that of its competitors, according to CNBC Indonesia.

However, Nadiem did not reject the major online transport services for the development of its business. For Gojek, online transport services are the initial source of their income, especially for online motorcycle taxi services. Indeed, it is the most used service and attracts the most users for their applications. This service is also the main source of revenue for 2 million Gojek drivers.

This service is the power of other Gojek services such as GoFood, for example. In addition, online transportation services encourage Gojek customers to use the service again. Gojek therefore uses a strategy that combines the attractiveness of online transport with the revenues of restaurants and stores in search of customers.

However, Nadiem refused to reveal when the company would earn profits. So, it is felt that this will not happen any time soon. Nadiem only revealed that his company would reinvest all the profits for the users' growth. So, they can get a bigger slice of the market pie.

In the interview, Gojek said he received a $ 500 million injection from Google. This makes Gojek Google's largest partner in Southeast Asia.

American start-ups, pioneers of online transport services, were ranked as the largest private company in the world. However, after Uber released its first stake, the value of the company's shares immediately fell free.

This happened after Uber announced that they had suffered a heavy loss. This also raises questions about the evaluation ratings of various other Licorne online transportation companies in various parts of the world.
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