Gojek's services generate positive margins, Co-CEOs say

Gojek's services generate positive margins, Co-CEOs say

Gojek said its core services have generated positive margins in 2020 amid the challenges created by the coronavirus pandemic. (ANTARA/HO-Gojek)

This year has been full of challenges for all of us, and I am proud of Gojek's ability to stay resilient, to stay productive as it continues to be relied on by the people, at the same time continuing to strengthen company fundamentals
Jakarta (ANTARA) - Home-grown digital super app, Gojek, has said all of its core services are generating positive margins, an indication that its business fundamentals remain strong amid the challenges created by the COVID-19 pandemic.

The leading Southeast Asian on-demand application and digital payment platform released a statement on Monday, detailing this and other achievements as it entered its 10th year.

In 2020, Gojek said, its main services generated operational revenue that exceeded its headquarter's expenses, or contribution margin positive, which can be deemed an extraordinary achievement amid the global COVID-19 pandemic.

This indicates the company's business fundamentals are strong enough to allow it to continue on the path of sustainable growth, Gojek stated.

"Gojek enters its 10th year in the midst of the crisis caused by the pandemic; we believe that Gojek's ecosystem continues to play an important role in bringing supply and demand together, ultimately meeting the needs of the people," said the company’s Co-CEO, Andre Soelistyo.

"This year has been full of challenges for all of us, and I am proud of Gojek's ability to stay resilient, to stay productive as it continues to be relied on by the people, at the same time continuing to strengthen company fundamentals," he added.

The super app said some of the factors responsible for its achievement are investments in a number of strategic sectors, including products and services innovation, human resources in the technology sector, and automation, which have helped elevate the efficiency and performance quality of the Gojek digital application, including GoBiz self-serve onboarding and CareTech ticket automation.

The strengthening of the company’s fundamentals in 2020 has been supported by the Gross Transaction Value (GTV) within the Gojek group platform, which has reached US$12 billion (around Rp170 trillion), an increase of 10 percent compared to last year.

The increase has been supported by the transactions made by Gojek's active monthly users across the Southeast Asian region, whose number has reached 38 million.

An increase has also been recorded in digital payment service GoPay’s GTV, which has exceeded the figure for last year as customers and merchants have continued to shift to digital financial services and opt for digital transactions.

Going forward, Gojek aims to continue stimulating growth and focus investments in a number of main areas, including supporting digitalization and expansion of micro, small, and medium enterprises (MSMEs) in the country and in the region.

“We will continue to strengthen our commitment in supporting MSME development by providing comprehensive solutions, including through funding and financial services that can help MSMEs to survive and expand, and become part of the growth of the digital economy in Southeast Asia," said Andre Soelistyo.

Meanwhile, Gojek Co-CEO Kevin Aluwi said the company is committed to continuously creating opportunities to help make lives better through technology, while, at the same time, focusing on business efficiency.

“We will continue to create positive impact for our ecosystem and to contribute to the Indonesian, as well as Southeast Asian economies in the years to come,” Aluwi added.

As a part of the company’s merchant ecosystem, the MSME sector has contributed to its growth amid the pandemic, as more MSMEs have opted for digitalization of their businesses, Gojek said.

The ecosystem has seen an 80 percent growth, recording 900 thousand merchants, compared to 500 thousand last year, it added.

Aside from MSMEs, the company is also seeking to invest in technology and human resources to elevate its user experience factor, both for customers and partners, and at the same time, increase efficiency for ensuring a sustainable business.

As a part of its strategic investments, in 2020, Gojek has integrated the operations of its digital applications in Indonesia, Singapore, Vietnam, and Thailand, as a step to strengthen its brand in the international market and to allow the acceleration of service development in the countries.

“We are optimistic that 2021 will become an even better year for Gojek and our partners,” Aluwi remarked.

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