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China’s ride-sharing leader Didi Chuxing agreed to acquire UberChina. Now Didi and Japanese giant SoftBank are said to be leading a $600 million investment in Singapore’s ride-hailing behemoth Grab (GrabTaxi, GrabCar, GrabBike), Uber’s most powerful rival in Southeast Asia. Motorcycle taxis are a very common form of unlicensed transport in Indonesia, where they are known as ojek. The motorbike taxis typically carry one passenger, who rides as the pillion behind the driver. Multiple passengers are common in some countries. Ojek can be found throughout Indonesia, from towns where traffic jams commonly hinder other forms of transport, to rural areas inaccessible by four-wheeled vehicles. Because of traffic, ojek are often the fastest form of transport, especially in Jakarta. Many people choose them over taxicabs, which are safer, but slower and more expensive. The widespread availability of cheap, domestic motorcycles made by Honda, Yamaha, and Suzuki, and even cheaper ones imported from China, as well as credit schemes with which to purchase these, have resulted in the rapid growth of ojek. The ease with which driver’s licenses can be obtained has also been a contributing factor. Founded in 2010, Go-Jek is the first Indonesian mobile platform that touches across socio-economic classes and verticals at a high transaction frequency that includes transportation, food delivery, same-day delivery, grocery shopping, household cleaning, beauty and health and ticket sales. Go-Jek’s motorcycle transport service, Go-Ride, is the biggest service of its kind in Indonesia with more than 200,000 drivers. Outside of motorcycle transport, Go-Food is the second largest on-demand food delivery service in the world outside of China with over 15 million meals delivered since inception. Go-Pay, launched in April 2016, is now a fast-growing e-wallet solution in Indonesia. With credit card penetration in Indonesia at under 2% and online payment nascent, Go-Pay is essential in enabling a seamless transaction experience on Go-Jek services. Go-Jek and Go-Pay are best-positioned to capture wallet share from a growing online user base. Go-Jek’s mobile applications have been downloaded more than 20 million times as of June 30, 2016. In June 2016 only, there were over 20 million bookings on the Go-Jek platform, translating to roughly eight bookings per second being processed in that month. “Go-Jek is unique in its ability to be the number-one service provider across almost all key categories and the company has a real opportunity to strengthen its position as a leading mobile platform in Indonesia,” said Terence Lee, Director at KKR Asia. “We are excited to partner with Nadiem, Kevin, Andre and the entire Go-Jek management team. With a rapidly expanding middle class, increasing urban density and a young demographic that is internet savvy, Go-Jek is well positioned to become the ‘go to’ platform for high frequency daily services including transport, food, logistics and payment,” said Jeffrey Perlman, head of Southeast Asia for Warburg Pincus. “KKR, Warburg Pincus, Farallon, Capital Group and other participants in this fundraise not only bring global experience in the TMT sector, but they are also experienced local partners. With their support and investment, Go-Jek is poised to build on its initial success to become the largest on-demand application of choice for all Indonesians and improve the daily lives of more than 200,000 motorcycle and car driver partners, more than 35,000 Go-Food merchants whose businesses we helped grow and more than 3,000 service providers on our other on-demand services,” said Go-Jek co-founder and CEO Nadiem Makarim, a former McKinsey associate and Harvard MBA graduate. Indonesia, with the world’s fourth-largest population of more than 250 million people, is rapidly becoming a digital nation. Indonesia has 88.1 million active internet users and 36 percent of the population carry smartphones. Half of all smartphone users in Jakarta are users of Ojek mobile app services, having at least one such mobile app installed on their smartphones, according to Asian market research agency Cimigo. “Almost everyone in the mobile app Ojek market have used Go-Jek, a third have used GrabBike – usage of other brands is rare,” it says.]]>