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Reasons Why Amazon has Considered Investing in the Indonesian Ride-Hailing Giant Gojek

As per recent reports making rounds in Wall Street Journal Amazon is considering investing into Indonesian ride-hailing giant Gojek. Also, it promises to focus mainly into its delivery market and infrastructure.

This sounds interesting right?

However before we discuss this new revolutionary move, let us discuss about the Gojek App.

Below we discuss the Gojek App and basic history that led to its popularity in the e-commerce market. Thereafter we understand how it captured the attention of Amazon. 

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Gojek App – About the Solution and History

The Gojek Application was launched in 2010 in Indonesia. The solution promised users on-demand transportation of ojek services that are quite popular for transportation there. 

Ojek are mostly bike services which are mostly used for commutation purposes by people living there.

Over the years, it has even made its entry and presence felt in the world of on-demand delivery marketplace by providing on-demand delivery services to users of food, grocery, water, flowers, etc.

Other Advantages of Gojek App

The solution ensures users quality services from professional tutors, lawyers, etc at their doorstep. Over the years it has become a household name in other parts of Southeast Asia. These places include Philippines, Thailand, Vietnam and Singapore, to name a few.

Amazon In Nascent Stage in South-East Asia

Thus, when a giant like Amazon wants to make investments into the delivery and infrastructure of Gojek, it is but a revolutionary move.

This is because Amazon is still in its nascent stage in other parts of South-East Asia.

So, what are the reasons that led Amazon to consider making an investment into the Indonesian ride-hailing giant Gojek App?

Let us take a look at those reasons more concisely.

Reasons Why Amazon is Considering Investing into Gojek

  1. To strengthen the presence of Amazon in South-East Asia
  2. To help Gojek reach a wider audience
  3. Create a large user base in parts of South-East Asia like Philippines, Vietnam, Singapore and Indonesia

Why Investing Into Gojek is Revolutionary for Amazon

The move by Seattle-based giant Amazon into the Indonesian startup will be a revolutionary move.

This is because, Amazon will be encouraged to build greater presence in Indonesia where it is in its nascent phase.

Region Where Amazon is Popular

Currently Amazon is popular in Singapore alone. This was after the introduction of Amazon Prime feature. With this new venture thereafter it would enter into a competition and revolution in the history of e-commerce. This will be with other e-commerce giants like Alibaba Group and Shopee.

Also, worth mentioning is the point, the investment will encourage user penetration and increase it rapidly. This is expected at 8% and 13.5% for 2019 and 2023 respectively.

However, neither of the giants, Amazon or Gojek has confirmed about it.

Concluding Notes About Amazon Investing Into Gojek

The initiative by Amazon of making investment into Gojek is testimony to prove the popularity of Indonesian ride hailing giant Gojek

With this initiative, Amazon will attract a great user base. Also, capture the attention of many new South Asian users in the long run thereby ensuring great profits for Jeff Bazos, the CEO of Amazon and a great user base as well all at the same time.

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