Indonesia’s ride-hailing giant Go-Jek on Wednesday officially kicked off its operations in Vietnam through local company Go-Viet, after a trial period in Ho Chi Minh City, kicking off its $500-million overseas expansion.
“In the next four months, Go-Viet will focus on four core services including Go-Bike, Go-Car, Go-Food and Go-Pay with the aim of becoming the largest multi-service platform in Vietnam,” said Nguyen Vu Duc, CEO of Go-Viet.
Go-Viet said, services such as Go-Beauty and Go-Clean would will soon be deployed in Vietnam.
Speaking at the launch event, Nadiem Makarim, CEO and Founder of Go-Jek, said, “After over a month trial in Ho Chi Minh City, Go-Viet has 1.5 million downloads and now accounts for 35 per cent market share of bike connect platform in the city.”
Go-Viet is a multi-service connectivity application, run by the Vietnamese founding management team, backed by Go-Jek in terms of technology, knowledge, expertise, and finance.
Vietnam is the first market in the Go-Jek’s international expansion plan. Thailand, Philipines and Singapore will be the next markets. Currently, Go-Jek is on the process to work with the Ministry of Transport to soon deploy services in the country.
Go-Viet’s launch marks the start of Go-Jek’s planned international rollout, with further operations in Thailand, Singapore and the Philippines also in the pipeline. Go-Viet expects to introduce additional services such as Go-Car, a four-wheel ride service, Go-Food, for quick food delivery and Go-Pay, its e-money service.
Nadiem added: “Since we launched the Go-Jek app back home in Indonesia, our passion has been to find new ways to add value to consumers’ lives. That’s why Go-Jek has grown to become the only platform that provides 17 different services designed to make life that little bit easier for people in Indonesia. We hope to see Go-Viet grow in a similar way over time as the team finds new ways to improve our offering.
In May, the Indonesian unicorn announced to invest $500 million for its expansion into the four Southeast Asian markets of Vietnam, Thailand, Singapore and the Philippines.
The Southeast Asia expansion, according to Go-Jek, follows many months of detailed planning and market research after its latest fundraising round, which was joined by KKR, Warburg Pincus, Google, BlackRock, Jd.com, Meituan, Tencent and Temasek, among others.
The round is believed to have pushed up the Indonesian unicorn’s valuation to $5 billion. In June, Go-Jek was said to be in talks to raise a fresh funding round of another $1.5 billion to support its plan to expand into new markets and challenge Grab’s domination in the region following Uber’s recent exit.
Go-Jek’s competitor Grab, meanwhile, has officially made a strategic investment in Vietnamese mobile payment startup Moca to roll out payments services to consumers and SMEs in the Southeast Asian market.