Press release
State of ride hailing services in Indonesia
As the popularity and convenience of ride hailing services increases in Indonesia, two players have emerged in the forefront. Within Southeast Asia, Grab has emerged as the largest online ride hailing service and Go-Jek is its competitor, an Indonesian Unicorn start-up. Apart from providing food delivery services, fraud is a systematic issue both players need to address. These were the findings from a survey conducted by Spire Research and Consulting group in 2018.Spire conducted a survey on drivers and customers to understand their preference of ride hailing service, measuring customers’ awareness, usage frequencies and interest in provision of e-money payments offered by both applications, among other measures.
The survey showed that 50% of respondents agreed that Grab and Go-Jek are jointly their favourite brands.
On the product usage frequency variable; 34% of Grab’s customers’ are more likely to use the service 3-4 times a week whereas Go-Car usage is only at 25% with customers’ using the service only 1-2 times a week by the end of the 4th quarter for 2018.
At the same time, Go-Food is in the lead with 35% of respondents who prefer this brand for food delivery.
In 2018, both applications developed e-money payment options in Indonesia. Grab co-operated with OVO whereas Go-Jek launched Go-Pay. OVO usage exhibits strong O2O usage, while Go-Pay’s forte lies in Go-Jek’s mobile app ecosystem.
The survey revealed that fraud is prevalent among drivers, who do it to increase monthly income. A significant percentage of both brands’ total transportation orders might be fraudulent.
Conclusion
Spire’s study points to the immense potential of ride hailing services across Indonesia for a wide array of functions, including food delivery. Two major players have emerged – Grab and Go-Jek.
The future is undoubtedly bright for Indonesia’s ride hailing services industry but the issue of fraud needs to be addressed more effectively.
Spire Research and Consulting was established in 2000 to address a gap in the research and consulting industry in global emerging markets. Unlike most agencies that focus on traditional consumer research, our founders saw a profound need for holistic research projects.
These projects integrate traditional customer research with knowledge of the broader business eco-system; for instance, competitors, channels, legal and regulatory factors. They support strategic decision-making for market growth and entry. Our studies provide indispensable tools for creating business plans, setting sales quotas, quantifying budgets and investment as well as making product launch decisions.
Spire exists to undertake such projects with distinction.
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