Indonesian group Astra International, the country’s leading automobile distributor, will form a joint venture with Go-Jek that provides cars to the ride-hailing operator’s drivers.
The tie-up will help Go-Jek expand its four-wheel fleet as it battles for dominance in Southeast Asia’s largest ride market.
The deal includes an additional $100 million investment by Astra into the Indonesian unicorn — private companies with valuations of over $1 billion — lifting the conglomerate’s total funding of Go-Jek to $250 million.
The venture adds “several thousand cars” to Go-Jek’s four-wheel ride-hailing service Go-Car, all equipped with Astra’s fleet management system, the two companies said. Drivers who use these vehicles will pay a subscription fee that includes services such as maintenance and insurance.
Go-Jek began as a local startup offering motorbike rides, which can weave through the Indonesian capital’s chronic traffic.
The joint venture and Astra’s new funding “demonstrate our continued confidence in Go-Jek” and represent “a tangible manifestation of our collaboration to explore the synergies between Go-Jek’s technology and Astra’s automotive business,” said Prijono Sugiarto, president director of the conglomerate. “We hope this collaboration can help more people generate income, as this will improve their welfare and have a positive impact on Indonesia’s economic growth.”
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5 March 2019