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GO-JEK enters advertising business through Promogo buyout

GO-JEK has entered the advertising business through its acquisition of Promogo, an advertisement provider company. Financial details of the transaction was not disclosed and upon closing, the deal will not see any  management and operational change of Promogo, which will stay independent.

The deal will also culminate in GO-JEK providing full support for the cost incurred for the production of advertising material, while driver partners receive net income from every advertisement placed. Through the move, both parties aim to leverage GO-JEK’s GO-CAR and GO-RIDE assets to create effective solutions for driver partners, customers, and businesses in the market.

Currently, Promogo serves more than one million GO-JEK driver partners and the brands. It is known for allowing drivers to place advertisements on the body of their cars to earn extra revenue.

As for inside the vehicles, GO-JEK has also launched GO-ICE, an in-car entertainment product, and GO-VEND, which allows customers could purchase basic necessities and essentials, or get free brand samples.

Andrew Tanyono, CEO and founder Promogo, added in a statement that customers can now enjoy customised on demand various in-car entertainment such as movies, music, news, USB charging station, free high-speed WiFi on the go.

Meanwhile, Kapil Baldev Mathrani, head of fleet monetization GO-JEK, explained that the new offering also allows brands to conduct product sampling and increased visibility.

“In today’s challenging business landscape, companies often strive to shrink expenses while still maintaining corporate image and delivering maximum value to customers. Promogo strong expertise in data and analysis will help brands to be more effectively engaged in the market,” Mathrani added.

He said that up to today, more than 50,000 driver partners have experienced the positive impact from this collaboration in the Jabodetabek area. Moving forward, Promogo plans to connect brands to more than a million GO-JEK driver partners across Indonesia and “create a positive brand exposure to a larger target audience from moving vehicle through digital and physical branding”, the statement read.

“With this acquisition, GO-JEK will not only provide an access for driver partners in having an additional income but also increase customer’s traveling experience with various entertainments and other facilities,” Nila Marita, chief corporate affairs, GO-JEK, said.

This year, GO-JEK made several pushes into the content business, most recently through its investment in Kumparan, a digital media start up, which positions itself as both a news site and social media platform which allows user content creation. Earlier in the year, it partnered with VICE Media in Indonesia have partnered up to produce a slate of original content.

Last week, the company was also in the talks to raise an estimate of US$2 billion according to Bloomberg to grow its expansion plans. GO-JEK first began its expansion plans in May when it invested US$500 million into its international expansion. Reports cited the player eyeing markets such as entering Singapore, Philippines, Thailand and Vietnam.

GO-JEK is also not the only one to have made a push into the advertising scene, with rival Grab launching a similar service last month. Called GrabAds, the advertising business unit and platform married the company’s on-ground fleet of vehicles with digital presence across eight countries and more than 200 cities in Southeast Asia. This is to allow brands to distribute appealing content and create in-car and digital experiences for consumers.

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