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

As per recent reports that have made rounds in the Wall Street Journal, Amazon is considering to invest into the Indonesian ride-hailing giant Gojek and focus mainly into its delivery market and infrastructure.

Let us first know a little about the Gojek App and its basic history that has led to its popularity in the e-commerce market and especially it gaining the attention of Amazon. 

ride-hailing giant

Gojek App

The Gojek Application was launched in the year 2010 in Indonesia that promised users on-demand transportation of gojek services that are quite popular for transportation in Indonesia. 

Over the years, it has even made its entry and presence felt in the world of on-demand delivery marketplace by providing the on-demand delivery services to users of food, grocery, water, flowers, etc and even making it easy for them to get tutors, lawyers, etc at their doorstep and thus has become a household name in other parts of Southeast Asia as well like Philippines, Thailand, Vietnam and Singapore, to name a few.

Thus, when a giant like Amazon wants to make investments into the delivery market and infrastructure of Gojek, it is nothing more than obvious and a revolutionary move for them as Amazon is still in its nascent stage in other parts of South-East Asia.

So, what are the reasons that have led to Amazon even considering 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

So, it goes without saying that the move by the Seattle based giant Amazon into the Indonesian startup will be nothing more than a revolutionary move for them as it will encourage Amazon to build its greater presence in Indonesia where it still has a nascent presence.

Currently Amazon is only popular in Singapore where it gained popularity with the introduction of the Amazon Prime feature and with this new venture of Amazon making an investment into Gojek, it would enter into a competition and a new array of revolution in the history of e-commerce with other e-commerce giants like Alibaba Group and Shopee.

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

However, neither of the giants, Amazon or Gojek has confirmed about it but the basic idea of Amazon even considering making an investment into Gojek is enough testimony to prove the popularity of the Indonesian ride hailing giant Gojek among the Seattle giant Amazon. 

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