You can literally smell the competition between top ride-hailing companies in Asia.
Uber is having sleepless nights considering the fact that there is another competitor knocking on the door––Go Jek. The reason for the speculation is due to the latest fundraising round that Go-Jek has undergone.
Sources indicated that the on-demand taxi service raised additional funding worth $1.2 billion. The fundraising round was initiated by JD.com, the e-commerce giant from China (JD.com currently serves Alibaba).
This funding round and an additional investment by Tencent takes the total valuation of the company to $3 billion. This deal has been in the works for quite some time, as it is the case with most deals that involve a huge capital tagged to it. JD.com is a well-known partner of Tencent, which doesn’t surprise most people. The two entities are working together on very attractive investment.
Though GoJek started as a bike-sharing company, it is a full-fledged ride-sharing company today. GoJek has four-wheeled cars for its servicing unit and the company has over 200,000 drivers across 25 Indonesian states.
Just like its immediate competitor, Grab, Go Jek is planning to go digital by including digital payments, which is over and above the taxi business that it has right now. The company expects the riders will engage more with the company through the app and increase loyalty towards them.
There are other investors who are keeping a close eye on Go Jek’s journey. Some of these names include U.S based KKR, Warburg Pincus, and Sequoia Capital.