GO-JEK has expanded into Vietnam and Thailand, establishing two locally founded companies in the process. This will see both market being run by locally-founded management teams, while GO-JEK provides the knowledge, expertise, technology and investment.
The move will also see the creation of new brands, namely GO-VIET in Vietnam, and GET in Thailand.
GO-VIET will begin beta testing in July, involving a select number of drivers and consumers, before it fully launches in the coming months. Following the launch of GO-VIET, the GET brand will be introduced in Thailand following consultation with local stakeholders including government, drivers and consumers.
Both brands will start with ride-hailing services and on-demand logistics services before moving on to food delivery and payments. Moving forward, GO-VIET will be led by Nguyen Vu Duc, chief executive officer and co-founder, while GET will be led by Pinya Nittayakasetwat, chief executive officer and co-founder.
“They may be using different brands, but they will be operating under the same values system that has made GO-JEK the market leader in Indonesia. It’s not just about growth, it’s about finding ways to have a positive impact on as many people as possible,” GO-JEK CEO and founder Nadiem Makarim, said.
Makarim explained that GO-JEK’s strategy is to combine its technology with the in-depth market knowledge and expertise of the local teams, to create local businesses that really understand consumers.
“We have been working with them for several months now and are excited about continuing to do so as they launch their services and make their presence felt in their respective countries. Ultimately, we want to make sure consumers and drivers feel the benefit of a more competitive industry,” Makarim added.
Marketing Interactive has reached out to GO-JEK for additional details.
The move comes one month after GO-JEK dedicated a US$500 million investment into its international expansion, which highlighted its pending entry into Singapore and Philippines, on top of Thailand and Vietnam, in the next few months. A statement at the time added that the local companies will determine their own brands and identities to ensure good traction in each new market.
News of the expansion first emerged in April following the exit of Uber in Southeast Asia. In Singapore, GO-JEK was tipped to be in talks with Singapore taxi operator ComfortDelGro for a tie-up to enter the Singapore market. Talks between both entities are still in the early stages, according to TechCrunch’s sources.
GO-JEK also bagged US$150 million funding from Astra International and Google, which was earlier tipped to be in the investment round along with Singapore’s Temasek Holdings, according to Reuters sources. This also saw companies such as Meituan-Dianping is also taking part in the round, along with existing investors such as global private equity firms KKR & Co LP and Warburg Pincus LLC. This is to raise around US$1.2 billion in total.
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