So, how does Gojek work, and how does Gojek make money? Gojek was founded by Nadiem Makarim in 2010. It created a fleet of bike riders that provided rides to the passengers on demand. This startup at the time also provided courier services and food delivery services at a later date. But it is a fact that the startup did not receive a lot of traction in the initial years. However, things turned around since January 2015 for the startup. The Indonesian on-demand and ride-hailing startup launched an app at the time. The company became a unicorn recently with Gojek funding of $550 million in a fundraiser. Gojek valuation is around USD 1.3 billion at the moment.
Gojek business model
Fundamentally Gojek is a multiple service platform that caters to a few segments such as merchants, consumers, and drivers. If you can learn about the way this business model works for various segments you will be able to comprehend the Gojek business model and how the Gojek revenue is generated.
1. Gojek for consumers
This segment of Gojek comprises people that utilize the range of services offered by the Gojek super app. The company gives a straightforward and reliable experience to its users. The consumer segment of Gojek contains people that are looking for fast access to certain solutions. It caters to people that want reliable services at reasonable pricing. They also provide service to people looking for a range of choices and are wishing for fast and safe delivery. The company offers many value-added services. These include a single-stop service for several requirements, safe transactions, and a range of reliable service providers and retailers.
Here is how it works for consumers
- Defining the requirement: The users initially have to identify the requirement and then lookout for a solution on the Gojek app. Gojek offers several top solutions such as GoRide, GoShop, GoSend, and GoFood. There are in the excess of twenty such services available with the platform. According to their requirement at the stage, these users can commit to the suitable service among those offered by Gojek.
- Booking the right alternative: After the user has decided about his or her requirement and the service they are going to utilize, these users may go on to book it for finalizing the decision. The users can choose the alternative and add it to the cart. After the cart is ready with the required purchases, the users can move ahead to the next step.
- Pay the bill: After the customer cart is ready, the users may move on to the payment alternative to pay for the buy. The buyer can select from the alternatives of cash on delivery or payment online. The cash-on-delivery alternative may cost the buyer a bit more than the online payment. However, the organization has to do this for minimizing false orders. They have to eliminate the risks as far as possible.
- Receive the ordered services: After you have completed the payment, whatever services the customers are using whether a grocery delivery service or a food delivery service, the package will reach their doorstep. Or the necessary job is done in stipulated time. The timing for this may change depending on the service selected by the customer.
2. Gojek for merchants
Several merchants board the Gojek train. Gojek is a new-age business and some old-school and traditional service providers and businesses are looking to join the bandwagon to take advantage of the popularity of Gojek. There are many reasons why merchants are interested in this platform. Gojek is one of the better online services out there. It allows a range of user base to the merchants, adds value to a business, and the collaboration is profitable. It is also one of the fastest-growing business models in the world. Merchants that are aware of the Gojek model and find it to be profitable for their business, sign up for it.
How does Gojek work for merchants?
- Receiving the request or order: After a customer has placed a request or ordered successfully, these merchants receive the same on their mobile apps. After they have received the order, they start the procedure of supplying the order to the customer.
- Preparing for the delivery: Whatever the service your customer has ordered, the service provider or merchant can begin the procedure for preparing the order. They can decide if moving out for help is necessary for things such as packing, moving, or cleaning. This is a critical phase where all the tools come out.
- Delivery: For orders such as grocery and food, the drivers will receive notifications about the order and they can swing by for collecting the orders immediately after it is completed. They can collect the order and deliver it where needed. Merchants can also pay the drivers by using the app.
3. Gojek for drivers
Gojek drivers are an essential component of Gojek operations and the interested people or groups may sign up with the organization for becoming the driving partners. The company has plenty to offer to the keen drivers such as lack of a rigid work schedule, several opportunities to select from, a simple signing-up process, and a lucrative monetary advantage.
How does Gojek work for drivers?
- Download the app: A first step for the drivers that are signing up with the company is downloading the app. Drivers need to verify whether the Gojek app is working properly in the area where they are operating. This is because the availability of the network is directly related to the amount of work they can take on.
- Signing up: After a driver has completed the downloading, he has to sign up for the Gojek platform with his details. There are many opportunities available for the drivers on the app to sign up. For instance, they can sign up with a bike or a car. Or they can choose to sign up as delivery personnel with one of the services taking into account their preferences. After initiating the sign up they will get an OTP that can be used for verifying their account.
- Define the profile: During the Gojek registration process, the prospective drivers have to provide some important documents. These include vehicle registration proof and identity proof for completing the process successfully. The drivers are also needed to add more info about themselves and maintain the profile updated. When they turn on the online button these drivers can start working with the Gojek app.
How does Gojek make money?
Gojek has displayed an impressive turnover every year and there are certain ways of achieving it. Let’s look into them one by one.
- Obtaining commission from the businesses: There are many businesses out there opting for Gojek. They are looking to enjoy its smooth operation to increase their sales. While providing their services, Gojek charges a fee for every successful order that occurs via their app.
- Obtaining commission from the customers: Gojek happens to be a one-stop place for the users and it gives a convenient solution for a range of issues. It eliminates the need to visit a range of apps for various requirements. For their services, Gojek charges a small commission to the customers. It is found that most users are happy to pay it to enjoy the reliable and convenient offerings from Gojek.
- Obtaining commission from drivers: Independent drivers or other delivery partners of Gojek are required to pay a small fee for using the platform for every order they are needed to deliver. Taking into account the perks offered by the platform to the drivers this small fee is a great bargain to the drivers.
The success achieved by the Gojek business model has meant there are many aspirants out there looking to develop such business models. They need to keep in mind that there are many struggles and challenges involved in the development. They are a part of the overall journey of the app. However, Gojek’s business model has survived through difficult times to create history. The Indonesian-based app is a single-stop destination for shopping, hyper-local delivery, ordering food, getting a massage, commuting, and digital payments. The super app supports several services to simplify the buying journey of a consumer. It has without a doubt established its existence in Southeast Asia and is getting ready to expand across the world. There is another great platform available for this purpose called Jungleworks. Here you can develop a multi-vendor marketplace or your storefront without using coding.
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