Digitizing Informal Service:

The GO-JEK & GO-LIFE Story

Bandung, 20 Jan 2017

Digitizing Informal Service:
TheGO-LIFE
GO-JEK & GO-LIFE Story
2.0 Monthly Performance Tracking

April 2017

Jakarta, 16th Dec 2017

Service Sector in Indonesia
 Service Sector Opportunities

618 Bn 180 Mn 100 Mn

Supply Size Smartphone
GDP value
/ Population Users

65% of Indonesian Productive age Across >80 cities with

GDP contribution
comes from service
sector
Source: http://data.worldbank.org/country/indonesia
population >15 y.o. >100K population
with >90% overlaps
between supply and
demand 4
 Service Sector Growth

Service sector is an important part of Indonesia's economy, contributing to >60 percent of the GDP at a rate of ~14% YoY. As country
develops, service sectors will continue to grow. As in most developed countries, service contribution to the country's GDP is >70%.

Indonesia’s GDP contribution by sector

In USD Bn
xx CMGR
Growth
xx # of service sector workers (in Mn)

Manufacturing 9.2% 962

Service 862 9%
755 289
345
340

286 674
517
165 143 415
91
74 143
14%
2000 2005 2010 2015 2020F

97 100 110 120 135

5
Source: http://data.worldbank.org/country/indonesia
 Service Categories Fragmentation NON-
EXHAUSTIVE
Service sector is characterised by extremely fragmented, informal industry with ~99% SMEs and freelancers – an opportunity to aggregate.
There are ~7 Mn supply across 7 key service categories valued at ~13.8 Bn
# of firms by size² (in 000)

Key categories Value (USD mn¹) Growth YoY (%) # Firms (in 000) Large SME Freelancers

Home
3,425 9.8 697 8 130 650
Services

Lessons &
646 12.0 243 2 49 192
Instructors

Automotive
350 6.8 603 6 121 476
Service

Cleaning &
58 14.5 568 6 114 449
Laundry

Professional 740
1,762 10.3 3,700 37 2.923
Services

Beauty & 26
677 15.0 130 1 102
Grooming

Health/ 85
434 5.8 423 4 334
Wellness

Home 127
6,400 13.0 634 6 501
Improvement

Total 13,752 10.9 6,998 71 1.390 5.628

6
Source: http://data.worldbank.org/country/indonesia
GO-JEK as a Pioneer of On-Demand
Services in Indonesia
GO-JEK app is the one-
stop mobile application for
on-demand services.
2011 2015
GO-JEK is Indonesia’s:
• 1st unicorn
• #1 highest valuation
• #1 fastest growing
• #1 highest transactions
• #1 most-diverse services
GO-JEK 3 years after launch:
• 65 Mn users
• 800,000 drivers
• 200,000 merchants
• 2,900 employees in 3 countries
• 75 cities from Aceh to Manado
• 20 vertical services
GO-JEK Line of Business:
1. Transport
2. Logistic & Delivery
3. Payment & Loyalty
4. Professional Services
GO-JEK Line of Business:
1. Transport
2. Logistic & Delivery
3. Payment & Loyalty
4. Professional Services – or
known as GO-LIFE
GO-LIFE as a Professional Service Arm of
GO-JEK
GO-LIFE is Indonesia’s:
• 1st on-demand lifestyle &
professional services
• #1 fastest growing
• #1 most-diverse services
• Top #5 installs in 2017
GO-LIFE is Indonesia’s:
• #1 largest massage company
• #1 largest beauty service
company
• #1 largest cleaning service
company
• #1 largest auto cleaning & care
company
GO-LIFE 10 months after
launch:
• 2,5 Mn users
• 60,000 Service Partners
• 18 cities from Aceh to Manado
• 80 vertical services
GO-LIFE in the next 18 months:
• 50 Mn users
• 3,000,000 Service Partners
• 1,000 employees in 3 countries
• 80 cities from Aceh to Papua
• 1000+ service types
• 10 vertical services
Digital Revolution is the New Imperative
All customers globally
are going digital
Internet penetration Smartphone penetration

125 mn 50%

85 mn 35%

68 mn 24%
55 mn

9%

2012 2013 2014 2015 2012 2013 2014 2015

Across age, occupation, and geographies
Customer behaviour changes
they want everything
here and now.
 40 seconds dispatch

The “now
economy”
revolutionizes
customer
behaviour.
There is an on-
demand app
for everything
Corporations & businesses
need to survive.
GO-JEK & GO-LIFE’s Killer Strategy to Win
Indonesian Market
Levers in Scaling & Winning in Indonesian Market

1 2 3 4 5
Purpose People Product Pricing & Partner-
Promotion ship
#1 Meaningful Purpose To Do Well & Do Good

Vision

“To empower informal service sector through

technology and user-centered design”
#1 Meaningful Purpose To Do Well & Do Good

Mission

“By providing a platform that seamlessly

connects users with service professionals”
#1 Meaningful Purpose To Do Well & Do Good

Cleaners Beauticians M asseuses M echanics

Committed to create social impacts for our 500,000 Service

Providers…
#1 Meaningful Purpose To Do Well & Do Good

… and their >1,5 Million family members

(husband, wife, children)
#2 Attract & Empower Passionate Intrapreneurs
• On Hiring: Hire people with passion for entrepreneurship & social impact but also
ensure diversity
• 70% of our users are women; woman cannot be underrepresented

• On Culture: Build a culture that stimulates & rewards employees to think like
intrapreneurs

• Everyone can invent & lead a product, experimentation is expected, mistakes are
congratulated
• On Decision Making: Democratization of resources, power & authority across products,
functions and regions
• Superstars are given disproportionate autonomy in i.e. hiring, decision making,
strategy, execution
• Pure meritocracy: “A 22 year-old leads a 45 y.o.”, performance-based
promotion/rotation/assignment

• On Environment-Setting: Provide avenues for employees to connect, collaborate, co-

create & celebrate
#3 User-Centric Products & Fast-Paced Launch

• Each GO-JEK product creates social impact on the supply side while solving
specific user pain point from the demand side
• Always start with user pain point in mind, product should solve that pain
point i.e. transport & logistic solves speeds & reliability issue, home service
solves discovery & service quality pain points

• Diversifying into the above services & combining it into one app presents
winning value propositions
• “One app to rule them all”

• Agile product development with at least 1 new product launch every month
• Avoid maximum validated and geared towards minimum viable product
• “Done is better than perfect”
#4 Dynamic Pricing & Localized Promotion

• Understanding city profiles, demography & psychography to know which

product to push & how to communicate

• Jakarta & Surabaya for 2W transport product, Bali for lifestyle products,
Semarang logistics products, Medan & Bandung for food delivery product
• Dynamic, affordable pricing tailored to each city based on customer ability &
willingness, direct competition, conventional substitutes, and social impact
• “One can’t be disruptive & expensive at the same time”

• Localized of marketing & promotion effort ensuring that each individual

market received content that is unique to its population behaviour
• Tweaking the balance between offline vs. online marketing, language
localization, tapping into local KOL
#5 Irreplicable Partnerships & Strategic Alliances

• Made exclusive, irreplicable Partnerships & Strategic Alliances includes:

• Vertical partnership along supply chain to minimize risk, increase
supply density, and attain cost leadership i.e. Blue Bird partnership
for 4W transport
• Horizontal alliances with other start-ups in the same area to
collaborate in a way that will improve market position i.e. collaboration
with HaloDoc app for on-demand medications & healthcare service
vertical
• Brand partnerships with businesses targeting similar user
personas for visibility lift, increased exposure, attachment to
other brand values i.e. GO-GLAM beauty service vertical x
L’Oreal, GO-MASSAGE with Wangsa Jelita, GO-AUTO with 3M,
GO-TIX with Blitz

And many more…

“The only way to win is to learn faster than
anyone else”
- Eric Ries
 Stay in touch!

Email
Thanks! dayu_permata@go-jek.com

Instagram
@dayudara