関西ベンチャー学会誌 第 15 号

査読論文

The Possible Application to Japanese Mobile Apps of Success
Factors of Gojek, an Indonesian Ride-sharing Company
Celine Agatha, Tomoyuki Ozawa
Ritsumeikan Asia Pacific University<ABSTRACT>This paper introduces Gojek, one of the largest startup firms in Indonesia that handles the latest
update of its business ecosystem starting from motorcycle taxis transportation with a mobile app. The
objectives of this paper are to identify Gojek’s success factors in Indonesia, to see what kinds ofmobile apps are served by Japanese companies to give services similar to Gojek, and to consider theopportunities and challenges of the possible application of Gojek’s strategy in Japan. Though it isdifficult for Japanese companies to directly apply all of Gojek’s strategy under current situation, we
analyzed the success factors in the strategy and categorized and sorted out the parts that can be
introduced in the short term and the long term in Japan, which is the contribution of this research.
Keywords: Japanese Mobile Apps, Ride-sharing, Electric Payment, Super app, Gojek

1 . Introduction

been no official numbers of Ojek drivers in Jakarta.

1.1. T ransportation System & Problems Related

Fares are negotiable between the customers andto the Transportation System in Indonesia

drivers. No driver registration is required, which

Indonesia is the world’s fourth most populous nation in the world with 275,122,131people

leads to not providing helmets and safety for riders
and customers (Palevsky, 2019).

living there (United States Census Bureau, 2019).
Due to lack of high quality of public transporta-

1.2. Introduction of Gojek as the Leading Online

tion, Indonesia still remains as a developing

Transportation Company in Indonesia

country. Inadequacies in Indonesia can be seen

To overcome these problems related tothrough one of the examples of its public transpor-transportation systems, Nadiem Makarim, thetation system, which is Ojek, a motorcycle taxi.

founder, CEO, and a graduate from Harvard

Ojek is popular modes of transportation in Jakarta

Business School, established Gojek in 2010 as the

because of its ability to weave through traffic andfirst call center in Indonesia to improve the service

travel into alleys and regions of the city that areof Indonesian motorcycle taxi, Ojek. CEO of Gojek

inaccessible by large vehicles (Palevsky, 2019).

also made an innovation in the form of an app that

However, there are several fragilities of “Ojek” that

could be accessed on Android and iOS (Prananda,

bring serious implications to the drivers and theYin-Fah, Li-Lim, and Poon, 2020). In 2015, Gojek

transportation industry. For example, there havestarted the mobile app, Gojek app that can order－ 23 －

関西ベンチャー学会誌 第 15 号

pickup by motorcycles, food delivery, ticket book-loyalty. Also, using the key ecosystem of Google,

ings, and other services (Gojek, 2022a). As the

such as the Google cloud system, is one of the key

leading platform, Gojek has been scaling up the

success factors of Gojek. There are challenges inbusiness by operating in three Southeast Asian

expanding the markets as there are competition andCountries such as Singapore, Vietnam, and Thailand

regulation in each market and country. Arviollisa,

and became the first unicorn start-up company inChan, and Nirmalasari (2021) tested and measured

Indonesia. The app has been downloaded by more

the effect of AI on customer experience with fourthan 190 million users across three countries, withdimensions of AI based on the survey results of

two million of driver partners and up to 900,000

Gojek users, which shows that AI gives a signifi-

merchant partners across SEA (Gojek, 2022a).

cant effect on customer experience.

According to the Gojek’s official website (Gojek,

Wongkaren, Walandouw, and Primaldhi

2022b), Gojek has more than twenty services that(2021) mention Gojek ecosystem’s contribution toare divided into five main categories.

support the national economic recovery during the

For the last 10 years Gojek has created2020-2021 pandemic. Gojek ecosystem has acceler-

impacts for its driver partners and createdated the financial inclusion for GoTo Financial

far-reaching social impact for the merchant part-consumers and micro, small, and medium enter-ners. The most important part is that in 2019 Gojek

prises (MSME) merchants under the pandemic era.

contributed USD 7.1 billion to the IndonesianThrough cashless payments and digital investments,

company and that the total production value

GoTo Financial promotes the financial inclusion ofcreated by Gojek’s ecosystem is equivalent to 1%

consumers and MSMEs that do not have bankof Indonesia’s GDP in 2019 (Wongkaren,accounts or credit cards. It improves the quality of

Walandouw, Primaldhi, Wisana, and Nugroho,life and optimism of Indonesian MSMEs.

2020). In addition, in 2021 Gojek decided to merge

Prawita and Toyama (2021) made researchwith the biggest marketplace in Indonesia, which iswith secondary data about Gojek’s growth strategy

Tokopedia to form GoTo Group that consists ofand the business model from the viewpoints of theGojek, GoTo Financial, and Tokopedia (Gojek,

leapfrog strategy, platform strategy, and M&A

2022a).

strategy. Gojek enhanced the convenience ofcustomers and increased the number of customers

2 . Literature Review

by offering multiple services, such as the electric2.1. Research about Gojek

payment service, on top of the ride-sharing service

Prananda et al. (2020) conducted researchthrough the proliferation of the internet and theabout the business strategy, key success factors, andmobile phone in Indonesia. It has the first-moverchallenges of Gojek using secondary data, such asadvantage to offer the ride-sharing service platform

articles. It mentions that Gojek is using the market

to build an ecosystem, which led to the network

penetration strategy of the Ansoff Matrix and theeffect of the platform. M&A were strategicallydifferentiation strategy of the Porter Genericdone to get new technologies and engineers to keep

Strategies. The key success factors are consumer

efficiently improving services and the ecosystem.

protection and prioritizing customers experience for

Sakaibara (2019) made a research report

customer satisfaction, which leads to customer

about an app of Gojek as one to change the society.

－ 24 －

関西ベンチャー学会誌 第 15 号

Gojek aims not only to offer ride-sharing service

mentions the related regulation of each country andbut also to offer a super app platform providing

the factors to diffuse the use of ride-sharing glob-

multiple services. It has an ability to solve theally, which are accuracy of matching betweensocial issue, such as, low income of drivers, insecu-

demand and supply, high convenience, and the peerrity of service, and inconvenience of motorcycle

review system. Because of the regulation andtaxi. In addition, it contributes to the financial

unclearness of responsibility from the viewpoint of

inclusion of people who did not have access to thelabor management, the Japanese taxi industry is

traditional financial service by scaling up of theencouraged to use convenient ride-hailing services

electric payment service in the app. Gojek has a

as a supplementary means.

strength of know-how of big IT companies, thecloud service technology of Google, the electric2.3. Research about Super Apps

payment service of Tencent, the e-commerce

Mizuho Information & Research Instituteservice of JD.com, the financial service of VISA,(2021) made research about the rapid development

and so.

of the digital technology in emerging countries andTakei and Kitano (2020) focus the financialarea, such as, China, Indonesia, Singapore, Africa,

service offered through a super app by Gojek andand South America. There are leapfrog-type devel-Grab, a Singaporean ride-sharing company, as theopments by super apps partly because of social

companies which were originally not financial insti-

issues that there was lack of infrastructures of thetutes. Those companies started as the ride-sharing

bank, transportation, and medical, and partly

companies and expanded their services to financial

because of the environment of services’ low prices

services, such as, the loan service, the insurance

due to the proliferation of the mobile phone.

service, and the investment service in addition to

Ishigami and Ryu (2020) investigated the possi-

the electric payment service. They contribute tobility of the build-up of super apps in Japan. It

Southeast Asian society as the supplemental financeshows that the success factors of super apps inby giving access to the financial services to thesome Asian countries are getting of the large

individuals and the small medium enterprises that

number of users by ride-sharing service and SNS

did not have enough access.

service, and the implementation of the electronic
payment service and multiple services by one app

2.2. Research about Ride-sharing Service

smoothly, which leads to a virtuous cycle to estab-Yamashita, Nakanishi, and Asakura (2020)lish the big data platform and to keep improving

did an empirical analysis on the long-distance peer-

the qualities of services. As an issue for mobile

to-peer ride-sharing service in Japan using the dataapps services in Japan, they pointed out that there

provided by the Japanese ride-sharing service

is no app that can complete most of life activities

Notteco. It says that important factors forwith one application, a supper app, and the need forsuccessful match making are the departure time andthe service provider of the super app to do services

day, the days to depart from registration date, thenationwide. In addition, although telecommunica-

page views, and the driver’s past experience. Ota

tions operators and transportation companies have a(2019) made research about the situation of ride-large customer base and have the potential tosharing in the world and application in Japan. It

develop super apps, they were originally a regu-－ 25 －

関西ベンチャー学会誌 第 15 号

lated industry. It was difficult to have the perspec-

number of users’ reviews. We analyze from thetive of building a platform that can analyze theJapanese companies’ perspective that provide

company’s entire service from the customer’s point

mobile apps for them to become more successfulof view to make mobile apps services, which wasby applying even a part of a successful case over-mentioned as an issue as well by Ishigami and Ryu

seas.

(2020).

4 . Results
3 . Objectives and Methods

4.1. Gojek’s Success Factors

The main objectives of this research are to

Gojek, starting with the ride-sharing

identify Gojek’s success factors in Indonesia, to see

service, through the electric payment service,what kinds of mobile apps are served by Japaneseprovides a wide range of services with one mobile

companies to give services similar to Gojek, and toapp of one corporate group seamlessly, which

consider the opportunities and challenges of thetherefore leads to a lot of customers in Indonesia.

possible application of Gojek’s strategy in Japan.

In considering whether or not Gojek’s

According to Digital Riser Report 2021 (European

strategy can be applied in Japan, we first raise

Center for Digital Competitiveness, 2021), Indonesia

Gojek’s success factors from previous research andhas steadily improved its digital competitivenesssecondary data. In order to be successful, Gojek has

rank in recent years (+48 rank), while Japan has

combined its strategies to capitalize on the

dropped significantly in its ranking (-190 rank).

surrounding market environment and opportunities,

This report looks at which digital riser countries,

as well as enhance its own advantage. Therefore,

having increased their digital competitiveness, have

we conducted PEST analysis on the macro environ-

been more successful and elevated relative toment surrounding Gojek and VRIO analysis to see

others, which countries are lagging behind, andGojek’s advantage (Table1).

what can be learned from the best practices ofTable 1. PEST and VRIO analysis

leading countries. Although Indonesia is an
economically developing country, considering
whether there is anything that Japanese companies,
whose rank is dropping, can learn from the case ofa representative successful IT company in Indonesia,
whose digital competitiveness rank is higher thanthat of Japan is very meaningful. Therefore, we
here analyze its applicability to Japan.
To achieve these objectives mentioned
above, we implemented PEST analysis, VRIO analysis, and comparative analysis using secondary
data, such as information from web sites and press
releases of companies, institutions, governments or
so. Also, we used App Stores of Apple to search theSource: Gojek (2022a), Google Cloud (2022), Mergr (2022),
Mizuho Information & Research Institute (2021), Prananda et al.
(2020)

popular mobile apps for iPhone in Japan by the－ 26 －

関西ベンチャー学会誌 第 15 号

We show success factors by using the partof the results of PEST and VRIO analysis above.

to use Google platform and API, others also wereable to do.

First, there was no regulation that hindered

Then, we see what kinds of mobile apps are

the growth of ride-sharing services, such as theserved by Japanese companies to give services

Road Transportation Act in Japan.

similar to Gojek serves, especially the transporta-

Then, there were issues with the transportation infrastructure also as an external environ-tion service, the food delivery service, and the electric payment service.

ment. As mentioned above, public transportation
was not sufficiently developed, and Ojek, which is a4.2. Transportation Service

complementary means of transportation, had prob-

We first need to think about what kinds oflems such as inconvenience when finding it andtransportation services can be offered from the legal

opacity of price, which was a great opportunity toperspective when considering the chance and theenter the market.

challenge in Japan. Ride-sharing mainly means theThird, as an external environment, there

service that the individual drivers pick up and bringwere a lot of people in Indonesia who did not havea customer to the destination by their own car. The

access to traditional finance, and there was room

service by privately-owned automobiles to provide

for the electric payments to spread.

transportation for a fee, a ride-sharing service, isFurthermore, as the external environment,

basically prohibited as illegal taxi activities in

the Internet and mobile phones were not yet widely

Japan by the article 4, paragraph 1 of the Road

used, and there was a space for the spread ofTransportation Act. Companies cannot offer themobile phones in Indonesia then. At the time whenride-sharing service but can offer the ride-hailing

Gojek started providing services with the mobile

service.

app, the rapid spread of mobile phones caused theWe picked up by the keyword “taxi” theleapfrogging, which enabled rapid acquisition of

top 4 taxi-hailing apps for the iPhone in Japanusers to build up a business ecosystem.

which have more than 1,000 reviews to the apps as

It also enclosed the users who they acquiredof September 29, 2022 (Table 2).

through ride-sharing service by having them makepayments within the same app.

GO by Mobility Technologies is thenumber-one taxi-hailing app with 36 prefectures

Moreover, Gojek constantly analyzed theavailable in Japan. Japan Taxi, a subsidiary ofusers’ needs and convenience, and continued to

Nihon Kotsu, integrated Japan Kotsu HD andpursue the solutions and the good customer experi-DeNA’s business related to taxi-hailing apps

ence.

(“MOV” operated by DeNA and taxi app “Japan
Lastly, Gojek used the sharing economy toTaxi”) in April 2020. The largest shareholders after

match the needs and to solve the issues of stake-the integration of Mobility Technologies are Nihon

holders, customers, and drivers.

Kotsu and DeNA. NTT docomo and KDDI,

Gojek grew with a lot of M&A, which has

Japanese telecommunications operators, are also thean advantage to get resources quickly and a disad-

investors of the company. Though it serves theirvantage with difficulty of management of different

own electric payment service, GO Pay, in the app

merged companies. Also, though Gojek got benefits

on top of the other payment methods, the users－ 27 －

関西ベンチャー学会誌 第 15 号

need to register their credit cards beforehand.

by privately-owned automobiles to provide trans-

DiDi Mobility Japan started offering a taxi-

portation for a fee, a ride-sharing service, except

hailing app, DiDi Rider, in Osaka in September

for specified situations and uses. As one type of2018 with 12 taxi operators. SoftBank, Japaneseride-sharing, there is carpooling. Carpooling is an

telecommunications operator, established a joint

activity in which multiple people who go to theventure with Chinese ride-sharing giant DiDi

same direction ride together in a single private car

Chuxing. The know-how of DiDi, which is used bydriven by an individual and split the actual cost of

more than 500 million people in China and othertransportation among themselves. Carpooling is notparts of the world, is utilized in the Japanese taxi

prohibited. Notteco sets the fee for carpoolingindustry in 15 prefectures. DiDi Food Japan, awithin the actual cost and gives the ride-sharing

subsidiary of the ride-sharing app DiDi, started aservice by its web service not a mobile app.

food delivery service in Japan in 2020. However,
because the competition with Uber Eats Japan and

4.3. Food Delivery Service

Demae-can were fierce, it ended its food delivery
service in Japan in May 2022.

We picked up by the keyword “delivery”
the top 2 food delivery apps for the iPhone in

Minnano Taxi, which was funded by Sony

Japan as of September 30, 2022 (Table 3). In

and taxi companies, Green Cab, Kokusai Motors,

September 2016, Uber Technologies, a major U.S.

Kotobuki Kotsu, Daiwa Motor Transportation, andride-sharing company, launched Uber Eats, a foodChecker Cab, started a taxi-hailing app S. RIDE indelivery service for restaurants in Japan. By the app

April 2019. Minnano Taxi changed its name to S.

Uber Eats matches restaurants and the individual

RIDE in January 2021. It gives the taxi-hailing

who registers as a delivery person using a motor-

service in 8 prefectures utilizing Sony’s AI tech-cycle or a bicycle. It can be used in more thannology. Though it also serves their own electric

150,000 stores in 21 prefectures.

payment service, S.RIDE WALLET, in addition to

In October 2000, Yumenomachi Sozoiinkai

the other payment methods, the users need toopened a food delivery web site, Demae-can, and inregister their credit cards or other payment service

December 2010 launched a mobile app for a fooddata beforehand.

delivery. In November 2019, the company name

In August 2014, Uber Japan, the Japanese

was changed to Demae-can. The app can be used insubsidiary of Uber Technology in the United States,

more than 95,000 stores in 47 prefectures. The

launched a service that hailed taxis using a mobile

shareholders are LINE, Mirai Fund LLP, and Z

app. It gives the service in 13 prefectures with theirHoldings, a family company of SoftBank.

payment system, Uber Cash, which can be used by

Due to the intense competition to acquire

the charge from the credit cards for both a taxi-

users and delivery people, Foodpanda and DiDi

hailing service and a food delivery service, Uber

Food stopped their service in Japan in January

Eats.

2022 and in May 2022 respectively.
In addition to the top 4 taxi-hailing apps,

we hereby introduce an interesting ride-sharing

4.4. Electric Payment Service

service in Japan, Notteco. As we explained above,

We picked up by the keyword “pay” thethe Road Transportation Act prohibits the service

top 5 payment apps for the iPhone in Japan as of－ 28 －

Table 3. Food Delivery Service

Table 2. Transportation Service

Table 4. Electric Payment Service

関西ベンチャー学会誌 第 15 号

－ 29 －

関西ベンチャー学会誌 第 15 号

October 7, 2022 (Table 4).

In April 2019, au PAY, a mobile payment

In October 2018, PayPay, a joint ventureservice using barcodes and QR codes within the au

between SoftBank and Yahoo Japan, launched

WALLET app was introduced by KDDI.

PayPay, a mobile payment service using barcodes

Customers can use the app by credit card payment,

and QR codes at physical stores. PayPay canpayment by electronic money, au Pay, charged

choose between two types of payment, payment

from a bank account or a credit card in advance,with electronic money charged from a bankand the telephone bill total payment that are paid

account or a credit card in advance and payment

together with the monthly mobile phone bill. Therewith a credit card. It has more than 50 million

are about 27.5 million users, who can use the app

users and can be used at more than 3.7 million

at more than 4.5 million stores.

stores.

There is an important factor to think how
Rakuten started, Rakuten Pay, a mobile

we can penetrate the market by the electric

payment service using barcodes and QR codes forpayment app, which is the penetration rate ofstores in October 2016. With Rakuten Pay, users

people with an account at a formal financial insti-

can use two types of payment, payment by elec-

tution in the market. We can see that the rates oftronic money, Rakuten Cash, charged from a bank

Japan are 96% in 2011 and 98% in 2022, whileaccount or a credit card in advance, and payment

Indonesian’s are 20% and 52% respectively

by a credit card.

(Demirgüç-Kunt and Klapper, 2012, Demirgüç-Kunt,

In December 2014, LINE started accepting

Klapper, Singer, and Ansar, 2022). It means thatapplications for affiliated stores of the mobile

there are still a lot of target users to access the newremittance and payment service, LINE Pay, on thefinancial service in Indonesia. However, companies

free call and free email mobile app LINE. In

in Japan need to compete the existing financial

March 2021, Z Holdings and LINE finished theirservices to get new customers.

business integration and in July 2022 the QR code
was unified between LINE Pay and PayPay. From

5 . Discussion

August 2021, LINE Pay can be used at PayPay

Table 5 shows the Japanese mobile apps

affiliated stores. It has 40 million users and can becorresponding to each Gojek mobile app toused at 4 million stores.

compare them, and Table 6 shows the Japanese

NTT docomo launched a mobile payment
service, d-barai, which allows users to pay forcompany groups corresponding to each Gojek
mobile app to compare them.

purchases made at physical stores using barcodes
and QR codes displayed on their mobiles in April
2018. There are credit card payment, payment byelectronic money, d Point, charged from a bankaccount or a credit card in advance, and the telephone bill total payment that are paid together withthe monthly mobile phone bill. More than 43.7
million users are able to use the app at 4.1 million
stores.
－ 30 －

Table 5. Japanese Mobile Apps

関西ベンチャー学会誌 第 15 号

Table 6. Japanese Company Groups

Grant (2010) says that external environments have the volatility and unpredictability andthat “Strategic Fit,” strategic consistency with thecompany’s external environment and with its
internal environment is important as long-termplanning. A company alone cannot control thevolatility of the future external environment nor
predict that. A company needs to think about whatkinds of measures under what kinds of condition
should be taken. Then, we explain the things belowthat will become more applicable through long-term

As a result of comparing, while Gojek

consideration and measures under certain condi-

provides multiple services for customers’ everyday

tions, which are (a) The regulation prohibiting theactivities by one mobile app seamlessly as a single

ride-sharing in a short time, (b) The speed of diffu-

corporate group, there is no single corporate groupsion of mobile phone, (c) The penetration rate ofin Japan that provides the same range of services

people with an account at a formal financial insti-

by “mobile apps,” indicating that their competition

tution diffusion rate of financial services.

is fierce.

As for (a), since regulation is determined by
Based on the analysis of chapter 4 and thethe government, it is difficult for a single company

comparison results in this chapter, how much can

to control it in the short term. However, it would be

Gojek’s success factors be utilized in Japan? As thepossible to inﬂuence through long-term lobbying

legal system, society, and culture are different, it isfor the regulation to be aligned with your compa-

difficult to apply all of Gojek’s strategies directly tony’s strategy. For example, Japan Association ofJapan as they are. Then, out of the factors we

Corporate Executives and Japan Association ofwould like to sort out the things that Japanese

New Economy have asked to enact a bill for thecompanies can apply in the short term, the things

ride-sharing (Japan Association of Corporatethat will become more applicable through long-term

Executives, 2020, Japan Association of New

consideration and measures under certain condi-

Economy, 2020).

tions, and the need to pay more general attention.

Related to (b) and (c), the latest penetration

First, we show the things below thatrate of people with an account at a formal financial

Japanese companies are able to apply in the shortinstitution in Japan is as high as 98% in 2021

term by picking up internal factors, which in addi-(Demirgüç-Kunt, Klapper, Singer, and Ansar, 2022),

tion are not inﬂuenced by Japanese unique environ-and 96.1% of households in Japan owned mobile

ment: (a) Continuous improvement of the service

devices in 2019 (Ministry of Internal Affairs andquality considering the customers’ needs, conve-

Communications, 2019). Though all of the accountnience, and experience, (b) Seamless operation byholders and devices holders would not necessarily

one ID through one mobile app, (c) Establishment

use the account and the devices, it could show theof a platform as a business ecosystem including

possibility that high percent of users have alreadycustomers’ everyday activities.

accessed the service, which means the rapid spread－ 31 －

関西ベンチャー学会誌 第 15 号

of services through the current technology is not so

platform.

easy. According to Ministry of Internal Affairs and

It is difficult to apply all of Gojek’s strate-

Communications (2022), the global metaverse

gies directly to Japan as they are. However,market size is about 4 trillion yen in 2021, and it isJapanese companies can get tips on what to do

expected to expand to about 79 trillion yen by

from this research. We analyzed the success factors

2030. Also, there is the prospect and the different

in the strategy and categorized and sorted out thecondition that a new digital economic zone will beparts that can be introduced in the short term andbuilt on a decentralized network based on block-the long term in Japan where the legal system,

chain, which is called web 3.0. What we can learnsociety, and culture are different, which we believe

from the Gojek’s success is to provide services tois the theoretical and practical contribution of thisthe people who still do not access to the service byresearch.

new technology, which causes the leapfrogging

There are limits to this study. Secondary

leading to the rapid acquisition of users to build up

data from academic journals, studies, and publica-

a business ecosystem. Therefore, Japanese compa-

tions about Gojek and others are used in thisnies could focus on the new services by new tech-research. Further research could be conducted tonology such as web 3.0, not only to cling to thecollect additional information and to show addi-

current service by the current technology.

tional views.

Lastly, we add the need to pay moregeneral attention when applying the part of Gojek’s

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