Tag Archives: Grab

Indonesia’s Go-Jek raises $1.2 billion from Tencent

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Fresh from its $550 million funding round last year from investors such as KKR, Warburg Pincus, Farallon Capital, and Capital Group Private Markets, Go-Jek, Indonesia’s answer to Uber and Grab, has recently closed a new round of $1.2 billion led by Chinese internet leader, Tencent. At a $3 billion post-money valuation, Go-Jek is one of Asia’s fast-rising unicorns. According to sources, Go-Jek has been beating Uber in Indonesia since day one. By offering scooters instead of cars, Go-Jek has cautiously avoided a direct collision with the more established taxi industry. Being homegrown also gave the company the advantage of having a deeper understanding of the local market and easily attracted scooter owners to its platform. The company has since expanded into cars with its GoCar and today boasts of having over 200,000 drivers all across the country. The company plans to use its new funds to strengthen its Indonesian operations and hopefully dominate the country’s thriving ride-sharing market which is predicted to be worth $5.6 billion by 2025.

The future of mobility

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The recent partnership between Apple and Didi Chuxing underscores the changing market dynamics in today’s auto industry. Consumers have started to shift from traditional car ownership to ride sharing, while tech companies are investing heavily in autonomous driving technologies in the hopes to make the roads safer and traveling more convenient. It’s a combination of these trends that has created a market conducive for partnerships and investments. In addition to Apple’s investment in Didi, other companies have recently partnered up, either to take on Uber or to explore the possibilities of autonomous cars. General Motors invested in Lyft, who has teamed up with Didi, Ola and Grab. Google has partnered with Fiat Chrysler Automobiles. The Chinese rivals Alibaba and Tencent have both invested in Didi. In short, this market consists of many alliances and these partnerships will surely unlock new transportation experiences for consumers.