Comprehensive Analysis of Gojek Business and Revenue Model

Over the past few years, the requirement for multi-service solutions in an on-demand industry has been significant among people. It’s a concept of integrating multiple business sectors into a single solution and providing them collectively from a platform.

They tend to get their every need fulfilled by utilizing these applications in their daily lives, as they receive access to multiple services. It includes streaming videos on OTT platforms, ordering daily essentials, taxi-sharing, getting favorite dishes from restaurants delivered at home, and many others from the solution.

At first, the concept of ‘Super App‘ was introduced in China as the people were able to access various services through a messaging app named’ WeChat.’ Later, it gained a tremendous response from the people across China, and meanwhile, after a year of launch, it got a massive user quantity registered in 2012.

Later, by witnessing tremendous requirements among the people, there were many multi-services platforms launched in the market from all over. Some of its examples are Rappi from Latin America, Careem from Dubai, Paytm in India, Gojek in Indonesia, and Grab from Singapore.

Here in this post, you will gain some information about Gojek’s rise in almost entire SouthEast Asia and its business and revenue strategies. So let’s plunge into the various details regarding it.

How did Gojek become Famous in SouthEast Asia?

It is an online platform offering different services through a single-stop solution to the people. According to resources, it gained a massive user base with a total number of 38 million in 2020. Hence, one can easily depict its tremendous requirements among SouthEast Asian countries.

• Formerly, they started their venture by offering ride-sharing and courier services to people with a group of 20 ‘Ojeks’(drivers).

• Moreover, Gojek was founded in 2009 by  Kevin Aluwi, Nadiem Makarim, and Michaelangelo Moran in Indonesia, based in Jakarta.

• In 2015, they added four new verticals: GoShop, GoFood, GoSend, and GoRide.

• The firm stood 11th in 2017 and 17th in 2019 in Fortune’s ‘50 companies that changed the world’.

• In 2018, it came up with a list of 18 along with 2 new that resulted in 20 services into an application.

• According to resources, there were 29 million monthly active users of the firm in 2019 only from Indonesia and the remaining countries, including Vietnam with 4.3, Thailand with 2, and Singapore with 0.8 million MAUs. The image is displayed below.

Source: Statista

• And recently, in 2020, they launched GoStore, which helps tiny and mid-sized startups to initiate their venture online through the solution.

• Currently, they are operating their venture in over 8 Southeast Asian countries along with a staff of around 3000 workers.

• Reaching such a reputed market position requires a great business model, and that is mentioned in the next section.

What is Gojek’s Business Model?

There are 3 stakeholders of Gojek’s business strategies: Users, Merchants, and Providers. Users can select and gain any service from the vast range offered to them. Merchants giving specific services get notified of the user’s request on their devices and are allowed to accept or reject them for preparing the order for customers. The nearby partners are notified by request from the store owner if they are required to collect the order from the shop for delivery to the customer.

Moreover, a company’s business model contains value propositions for all stakeholders. Lat’s consider each of them mentioned below:

Value Propositions:

• Users
• Merchants
• Providers

Users:

Access to Different Verticals:

The users can choose from a variety of services available through an application. Furthermore, they can select a particular vendor related to a specific vertical by checking the prior feedback and ratings given by their customers.

Streamlined Booking of Services:

Users who are willing to receive a particular service can finalize it by selecting their preferred location and payment methods they are comfortable with. After checking out from booking the specific service, the customers get it within a shorter period of time.

Convenience:

Consumers can book any service appointments from an app sitting in their homes. In addition, they can also pay for particular services through the various payment gateways provided through the application.

Merchants:

Ease in Manageability:

Entrepreneurs can efficiently run their venture through an app because they are allowed to access different verticals of business. Those components of the venture include analyzing enterprise and employee earnings, operating an enterprise in different locations, checking the order history, etc.

Powerful Online Presence: The entrepreneurs can create a huge hype among the customers in their business. It is because they can add various posts about their venture on social media as the people stay engaged on those platforms the majority of the time.

Increase in Profits: The business owner receives significant profits in their venture as they get orders from multiple regions where they are serving through an application online.

Providers:

Flexible Hours of Working: In their free time, providers can get orders as they can set their availability to on/off from an application. Based on that parameter, they can receive delivery requests from the stores.

Optimized Maps: The providers can reach customers’ preferred locations using optimized maps offered to them in an application. It helps them in arriving quickly by displaying the shortest path to the delivery location.

Additional Income Source: They can earn an extra income by accomplishing the deliveries of services and orders. Also, they can work in their free hours apart from their busy time.

Thus, there are numerous entrepreneurs excited to initiate ventures providing multi-service online. They can get an app solution similar to Gojek through which they get business and revenue strategies of Gojek applied in a solution that helps their enterprise to flourish in many aspects and reach new milestones.

How Does Gojek Make Money?

Running a multi-service business across almost entire SouthEast Asia must generate tremendous revenue from its various channels. Those are mentioned below in detail.

Commission From Vendors

A company charges a fixed commission ratio from the merchants registered into an application. So, in this way, Gojek earns a decent amount of money from the retailers. Also, it encourages them to run businesses prominently through the platform and helps in stretching the business’s profit margins up to a great extent.

The firm charges entrepreneurs as per orders and certain facilities they receive through the platform in a ratio decided by it. Merchants pay commission right from they forward their orders for delivery to providers.

Commission From Users

The users receive an extensive service range to access from an application. It nominates the need to get various solutions installed on people’s devices to meet their purposes.

Gojek charges its users the commission in a fixed proportion of 10%. The customers pay a certain tax amount to the corporation for getting their orders/services delivered at their entered locations in a minimal time. Although, it charges a negligible value from customers for delivering the orders rapidly.

Commission From Providers

A company deducts 20% of charges from the provider’s earnings on accomplishing every order. The company offers a profit-centered model to the partners, as it encourages them to a considerable level because they earn on completion of every order.

Driver/service/delivery providers earn more on completion of the orders received through a platform. Thus, it contributes to the revenue streams of Gojek. Besides that, it offers huge scope to firms to make more money easily through the application.

Thus, from the income sources of Gojek mentioned above, you might have got an understanding of how it earns money by implementing the various types of commissions for stakeholders of its platform. However, as an entrepreneur, if you are looking to establish a venture online through an on-demand platform apart from the multi service sector. In that case, numerous app ideas do exist that might help you for initiating the enterprise in an appropriate field to generate significant income.

Moreover, starting the venture online and updating the previous conventional approach to a hybrid one, there are many companies ready to help. You can choose an appropriate development partner who can deliver a desirable solution that fits your budget and satisfies all the criteria of an enterprise. In addition, launching an online platform in the market nowadays is preferable as it would bring your business to a secure and reputed position in a very less time.

Final Verdict:

Hence, from the above discussion, one can easily determine that implementing the strategies of Gojek while stepping into an on-demand multi-service market will assist entrepreneurs in receiving significant conversions in the venture. In addition, it will also assist in exponentially expanding an enterprise’s reach to the targeted audience by allowing them to operate in multiple regions through an application.

Also, nowadays, customers prefer to have super apps as they get an all-in-one platform for fulfilling their varying requirements from their devices. As an entrepreneur, by running a multi-service venture, you can manage a massive base of users along with performing the essential functions effortlessly by following Gojek business strategies.