Indonesian ride-hailing unicorn Gojek says that it has seen “stable topline growth” despite the COVID-19 crisis, clocking a 10 per cent year-on-year increase in gross transaction value (GTV) to $12 billion this year, with its Gojek-branded services generating positive margins on a product basis.
In an announcement marking Gojek’s 10th year in operation, the company said its growth has been made possible by targeted investments in talent, infrastructure, and automation, which helps to serve its around 38 million monthly active users across Southeast Asia.
The feat, which has also seen GTV in its payments-related businesses exceeding pre-pandemic levels, represents a significant milestone as it indicates a strong path to profitability, the company said.
“This has been an extremely challenging and unprecedented year for everyone and we are proud that we have been able to maintain resilience across circumstances and improve lives for more people while optimising growth in key services and making the Group sustainable in the long term,” said Gojek co-CEO Andre Soelistyo.
Among the main drivers of this growth is the digitization of MSMEs in Southeast Asia. Gojek’s food merchant ecosystem, the group claims, has seen an 80 per cent increase with around 900,000 registered food merchants using Gojek’s platform and services, compared with 500,000 last year.
Gojek’s groceries business, meanwhile, which was expanded in 2020 in response to the pandemic, claims to have seen 500 per cent growth in annualized GTV since the start of the pandemic.
Gojek said merchants will continue to be at the forefront of its growth plan, with the company committing to invest in additional platforms and partnerships that open up new revenue streams for businesses and enable them to meet changing consumer needs by selling online.
The announcement of its growth comes after the company made some tough pandemic-related decisions earlier in the year.
In June, Gojek announced it was laying off about 430 employees and shut down a number of its services, as part of “a long-term response to the COVID-19 pandemic”. The move came less than a month after Gojek had announced funding from US tech giants Facebook and Paypal, which brought the company’s Series F round to over $3 billion.
Gojek, as DealStreetAsia has reported, is currently engaged in ongoing merger talks with archrival Grab. Negotiations are understood to have gained steam over the past few months, with investors from both sides pushing for a deal.