It is amazing how Uber disrupted the industry of transportation by leveraging digital technology. Hailing a taxi is made more convenient for the global riders today. But, there is one local taxi-hailing service in Indonesia that has managed to give Uber a ride for their money with their Smart fleet management, yes, we are talking about Go-Jek.
As one of the pioneering ride-hailing services, Uber did become one of the largest private technology companies in the world. But it didn’t take too long for its shares to slump in the market once the world learned about some its operational inconsistencies. Go-Jek, on the other hand, took a different approach to profit and turned into a “Decacorn” within a short time span.
If you run a ride-hailing service like Uber, there are many things you can do to transform your business into something similar to Go-Jek. Go-Jek has taken the slips of Uber and converted them to steady opportunities and how? Let’s do a close-up analysis in this blog.
Understand the Local Market
Solving the critical pain points of the industry starts with scrutinizing the market. You need to interact with your consumers and identify what they need that you can give. You should analyze your competitor approach to address these pain points. Determining the gaps and bridging them up needs to be carefully planned. This is exactly what Go-Jek did.
Focus on User Experience
A business that connects drivers with passengers is one thing, while Go-Jek went one step further and brought in order and transparency in the relationship between drivers and passengers. By making it mandatory for all drivers and trips to be registered, it made it easy to track down safety issues, if any. To improve the overall user experience, it also took into consideration the aspect of hygiene and went on to offer free face masks and shower caps for its passengers.
Cut Down Costs
The fact that Go-Jek’s ride-hailing service depends mainly on motorbikes, makes it less expensive than cars, thus keeping the availability of drivers constant throughout the year. Motorcycle taxis may not be that comfortable as modes of transportation. Nevertheless, in traffic-stricken cities, where the biggest problem is wastage of time, two-wheelers seem like the perfect way to commute from one place to another.
This is one of the reasons why Go-Jek was able to scale much faster than Uber without an increase in its operational costs.
Explore More Opportunities and Diversify
Sticking to a particular niche is important, but that doesn’t mean that you cannot diversify your business over the years. Doing this helped Go-Jek minimize losses and maximize demand, which is very important to survive the competition.
Go-Jek made the most out of its app by introducing a bouquet of personalized services such as booking trucks for moving, booking movie tickets, getting food and groceries delivered from the local market, delivering couriers within 60 minutes, and ordering the services of a masseur or a beauty therapist. Uber has just about started its food delivery service and has a lot of catching up to do.
Build Those Connections
Go-Jek has built some promising connections over the years that have helped navigate into the market without conflicts with the entrenched taxi industry. Backed by powerful investors like Google, Tencent Holdings, and KKR, Go-Jek has managed to raise a lot of funds over the years. Google alone has invested around $500 million in the business of Go-Jek, making Google its biggest partner in Southeast Asia. As per CB insights, Go-Jek is valued at an impressive $10 billion to date.
Establish a Global Presence
As a ride-hailing service, it is crucial for you to carve a niche in the local market. But with time, you should also try and expand into other emerging markets in and around your regions. Go-Jek has expanded its business into countries like Thailand, Singapore, and Vietnam, without losing its ground at its homeland Indonesia.
Whether you are a ride-hailing service or any other business, there is nothing you can’t do if you know how to use technology to your advantage. A deep understanding of the local market with a global outlook will help you explore lucrative opportunities and expand your business. Go-Jek did this without increasing its operational expenses.
There is one common factor among ride-hailing businesses that have flourished, they are all customer-centric. Your focus, at all times, has to be on enhancing the global user-experience. Customer satisfaction is the only universal thing that will aid in achievement.
Follow our posts to get great ideas on managing taxi services and car rental services. You may also be interested in our blog COMPLETE BUSINESS PLAN TO START A UBER LIKE RIDE-HAILING BUSINESS IN YOUR CITY.