Google has officially confirmed its investment in Indonesian ride-hailing giant Go-Jek.
In a blog post written by its Vice President Caesar Sengupta, Google said that this investment is as part of its strategy to support and participate in the growth of Indonesia’s internet economy.
A few days ago, Reuters reported that Indonesia’s ride-hailing giant Go-Jek is in the midst of raising a whopping US$1.2 billion in an investment round from Google and Singapore government-owned Temasek Holdings.
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“…we’ve invested in one of Indonesia’s leading startups, GO-JEK. GO-JEK is led by a strong Indonesian management team and has a proven track record of using technology to make life more convenient for Indonesians across the country. This investment lets us partner with a great local champion in Indonesia’s flourishing startup ecosystem, while also deepening our commitment to Indonesia’s internet economy,” read the Google blog post.
With more than 133 million people online, Indonesia is home to the fifth largest population of internet users in the world. Indonesia already has a thriving internet economy and a bustling startup scene, home to four of Southeast Asia’s eight “unicorns.
“To help all Indonesians access information and get things done, we continue to work on products and features with Indonesians in mind. Indonesia was the second country globally to get Google Station, our product to deliver high-quality public Wi-Fi with local partners. We have also designed products to work for Indonesians. YouTube Go helps Indonesians watch their favorite videos even with poor connectivity. And most recently, Indonesia was one of the first two countries in the world to get our new app, Google Go, which makes searching the internet faster and simpler for Indonesians on slow connections.
But there is still more we can do to support and participate in Indonesia’s growth. That’s why we’ve invested in one of Indonesia’s leading startups, GO-JEK. GO-JEK is led by a strong Indonesian management team and has a proven track record of using technology to make life more convenient for Indonesians across the country. This investment lets us partner with a great local champion in Indonesia’s flourishing startup ecosystem, while also deepening our commitment to Indonesia’s internet economy.
By investing in local companies, building locally relevant products and training local talent, we hope to see more amazing local champions like GO-JEK emerge in Indonesia. As always, we’re driven and inspired by our users and partners and are always on the the lookout for more opportunities to support them,” the blog post concluded.
Established in 2010 as a motorcycle ride-hailing phone service, Go-Jek has evolved into an on-demand mobile platform, providing a wide range of services that include transportation, logistics, mobile payments, food delivery, and many other on-demand services. Go-Jek currently operates in 50 cities across Indonesia. As per some reports, Go-Jek is entering the Philippines market in 2018.
As of last December, Go-Jek has 900,000 drivers, more than 125,000 merchants and over 100 million transactions processed through its platform per month.
In 2016, Go-Jek closed a US$550 million in funding at US$1.3 billion post-money valuation. A year later, it raised another US$100 million from China’s retail giant JD.com.
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Recently, Go-Jek acquired three companies in Indonesia, including offline payments processing firm Kartuku, payments gateway provider Midtrans, and local community-based saving and lending network Mapan, with an intention to strengthen its payments offerings.