It was long speculated that Go-Jek would be expanding to Singapore. Finally there is confirmation that the ride hailing company in Indonesia is indeed expanding across Southeast Asia and Singapore is one of its first pit stops. The company issued a press release in the month of May confirming the development. One can expect Go-Jek to make its presence felt by the end of this year as it starts to build its fleet and network of drivers.
Drivers for private hire and commuters are in for a joyride. The expansion of Go-Jek means there would be better fares for commuters and drivers will now have more options. Ever since Uber has quit the Singaporean market, Grab has maintained its numero uno position and has been solidifying its market cap. This market cap now stands threatened, albeit many experts feel that Go-Jek would have a tough time to find a foothold. Grab is the undisputed leader among ride hailing services in the nation and it has some amazing propositions for both drivers and commuters. The entry of Go-Jek in a not so large a market will lead to fierce competition. Grab will definitely prepare itself to counter the various offers of Go-Jek. The question remains who would take the fight to whom as Go-Jek seems to be the natural first mover in this case but Grab may have preemptive strikes up its sleeve.
Go-Jek is planning on substantial expansion across the Philippines, Vietnam and Thailand. The total investment for this international expansion has been pegged at five hundred million dollars, equivalent of six hundred and seventy one million in local currency in Singapore. Go-Jek is aiming for strategic partnerships with local companies, agents or networks and individuals. It does not intend to develop its entire infrastructure from scratch. Instead, it would bring its developmental and operational expertise to help local teams succeed in a myriad of ways. The advisory role of the company augurs well for its financial commitments since it can keep costs low while developing a solid foundation.
Go-Jek will not stay confined to ride hailing services in Singapore. It will start offering other services that it provides in Indonesia. In due course of time, Go-Jek will introduce eighteen different services in Singapore, the Philippines, Vietnam and Thailand. These services include food delivery, parcel delivery, on demand beauticians and massage therapists as well as online payment among others. The company has stated in its official press release that consumers across Singapore, Vietnam, the Philippines and Thailand do not have enough options. The company is aiming to offer consumers the choice of convenient services without worrying about quality, security and reliability.
As far as the ride hailing services are concerned, Go-Jek definitely has an uphill battle. Grab is unlikely to allow Go-Jek to tear into its market cap, woo drivers and impress commuters. The market in Singapore is mature and there is a problem with supply. The financial strength of Go-Jek will be at play and must make Grab sweat if it has to make major headway.
About the Author
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