Indonesian ride-hailing company Go-Jek kicked off its bid to challenge Grab in its home turf with an initial version of the app on Thursday, November 29, in Singapore.
It can now be downloaded on Android and iOS in certain areas across the country, for the purpose of balancing service capabilities and the demand for rides.
It will eventually expand to be able to accommodate everyone in Singapore, as more and more drivers join the company depending on the demand.
Nadiem Makarim, the Chief Executive Officer of Go-Jek told Bloomberg during its New Economy Forum, “It’s time to rebalance the equilibrium and add a lot more consumer- and driver-friendly policies and introduce some competition. But it will be a healthy competition. At the end of the day, the biggest factor will not be in the price competition but on how we treat our drivers.”
Go-Jek’s beta app launch coincides with the company’s partnership with DBS Bank, wherein clients of DBS, as well as POSB, will receive a voucher for $5 credit for the first two rides that they take, as well as be given first priority on the Go-Jek waiting list.
Andre Soelistyo, the president of Go-Jek said, “It is with great pride that we begin the roll-out of our services in Singapore. Consumers throughout the country have told us that they want more choice in this sector and with the launch of our beta app, their wait is coming to an end. We are launching in beta for now, while we fine tune our service to make sure it meets the high standards expected by Singaporeans. As such, we are asking all users, whether drivers or passengers, to provide us with ongoing feedback as we work towards creating the best possible service for the country.”
Rival ride-sharing company Grab says it welcomes the competition since it would drive it toward excellence.
According to CEO Antony Tan, “The question is, who can out-execute? It shouldn’t be about who has the mega P&L to subsidize crazy amounts of promos, which I am sure all of you are hoping for. “The truth is there’s going to be effectively more competition and that’s the only way to keep us all honest and innovative.”
Both Grab and Go-Jek have significantly increased in value, with Grab valued at $11 billion and Go-Jek expected to reach $5 billion by this year.