Indonesian ride-hailing decacorn Gojek has confirmed that it will be shutting down all but two services from its separate lifestyle division and app, GoLife.
The decision was taken following a review of the sluggish performance of the five services, which, combined, have contributed only 10 per cent of total orders on the platform.
“The GoDaily and GoLaundry services will be discontinued on 31 December 2019, while our GoFix, GoGlam, and Service Marketplace services will be discontinued as of 15 January 2020,” said GoLife head Wesly Simatupang.
Gojek, which hosts over 20 services on its main platform, spun off its lifestyle services as a separate app in 2017. At the time, the new platform consisted of GoMassage (home spa and massage service booking), GoClean (house-cleaning service booking), GoAuto (vehicle maintenance service booking), and GoGlam (beautician booking service). Since then it has added GoDaily (daily needs order and delivery service), GoFix (home appliances repair service) and GoLaundry (laundry service), as well as a new Service Marketplace feature.
Of the seven services currently on offer, only GoClean and GoMassage, which accounts for up to 90 per cent of orders on the GoLife app, will be retained and continue to operate.
Simatupang said the decision to slash the underperforming services was done with the consumer needs and company growth in mind.
“We believe that reviewing and optimizing the performance of our products and services is essential to meet the evolving needs of consumers and for future growth,” he said.
In a similar move, Gojek’s compatriot Bukalapak in September announced that it has abandoned a number of functions, including smart retail and some marketing roles, and laid off about 10% of its workforce, or around 250 workers, in a bid to cut costs and drive efficiency.
These moves come as tech companies and their investors have started to shift focus from accelerated growth to the question of profitability, brought about, in part, by the failed IPO of loss-making US tech company WeWork and the drastic correction in its valuation from an estimated $47 billion to $8 billion.
In an address to reporters at a company’s anniversary event in Singapore last month, Gojek co-CEO Andre Soelistyo alluded to the effect that the WeWork debacle has had to the investor fraternity. “Many will say that winter is coming. That’s why investors are also looking for companies that reflect a clear path to profitability,” he said.
Gojek is currently raising a Series F round of about $2 billion, which it is planning to close in January 2020.