Gojek and Grab: the rise of the south-east Asian super app | FT
Summary
TLDRThe video highlights how Southeast Asia, particularly Indonesia, is at the forefront of the mobile tech revolution, with super apps like Gojek and Grab transforming daily life. Initially starting as ride-hailing services, they now offer a wide range of services, including food delivery, financial services, and digital payments. These apps are helping small businesses and individuals thrive, while also promoting financial inclusion in a region where many lack access to traditional banking. The digital financial revolution is challenging cash-based economies, and these companies are expanding into core banking services, reshaping the financial landscape.
Takeaways
- 🚕 Grab and Gojek are Southeast Asia's super apps, starting with ride-hailing and food delivery and now transforming digital payments.
- 📱 Southeast Asia's population of 650 million, with most accessing the internet via mobile phones, offers a massive market for these apps.
- 🇮🇩 Indonesia, the world's fourth-most populous country, is at the center of this competition, where these apps are helping small businesses thrive.
- 💸 Digital payments are key to profitability for Grab and Gojek, which are moving into financial services like loans and micro-lending.
- 🏦 Many Indonesians are unbanked, and Grab and Gojek are offering basic financial services to those without traditional bank accounts.
- 🛒 Small business owners, like food stall operators, have transitioned from cash-based operations to digital payments via apps like Gojek.
- 💻 Indonesia's economy is still cash-heavy, but the transition to digital payments is seen as a major opportunity for growth and change.
- 🙏 Even religious institutions, such as mosques, and government services are integrating mobile payment platforms for donations and payments.
- 🏢 Critics warn that Grab and Gojek's growing dominance could lead to regulatory scrutiny, as they create a digital duopoly similar to Big Tech in the West.
- 🌏 Southeast Asia, particularly Indonesia, is now a major hub for FinTech innovation, with Western companies looking to the region for inspiration.
Q & A
What are the two major super apps mentioned in the script?
-The two major super apps mentioned are GoJek and Grab, both based in Southeast Asia.
What services do GoJek and Grab initially provide, and how have they expanded?
-GoJek and Grab initially started by offering ride-hailing and food delivery services. They have since expanded into online payments, micro-lending, and other core banking services.
Why is Southeast Asia, particularly Indonesia, important for GoJek and Grab's growth?
-Southeast Asia, especially Indonesia, presents a huge market opportunity due to its population of 650 million people, many of whom rely on mobile phones as their primary means of accessing the internet.
How have digital payments impacted small businesses in Southeast Asia, according to the script?
-Digital payments have helped small businesses, such as Roberto Ko’s, to expand significantly by enabling easier transactions and access to a wider customer base, boosting sales and reach.
How has GoJek helped individuals like Emma and Johannes improve their livelihoods?
-Emma, trained as a masseuse, was able to earn significantly more through GoJek than her previous job in a laundry, and her husband Johannes found that he could earn more as a GoJek driver than selling baby food.
What is the main path to profitability for GoJek and Grab according to the script?
-The main path to profitability for GoJek and Grab lies in digital payments, which underpin all of their other services. This system is seen as more lucrative than just ride-hailing or food delivery.
What challenges do GoJek and Grab face in Indonesia regarding banking and digital payments?
-One of the main challenges is the large portion of the population that still relies on cash transactions. Less than half of Indonesians have a bank account, and digitizing the economy requires a major shift in mindset.
How are traditional banks struggling in Indonesia, and how do super apps like GoJek fill the gap?
-Traditional banks find it difficult to cater to Indonesia’s vast, cash-based economy, whereas super apps like GoJek offer more accessible financial services, such as micro-lending, and make digital payments more viable for small businesses.
What role do digital platforms play in Indonesia’s religious and public services?
-Digital platforms are now being used in religious donations, such as at the Biderman mosque, where nearly a third of donations are made through mobile apps. Government services are also becoming available via phone top-ups.
What potential risks do critics highlight about the growing dominance of GoJek and Grab?
-Critics are concerned that GoJek and Grab's dominance could create a duopoly, similar to Big Tech companies in the US and Europe, which might lead to regulatory scrutiny, particularly as they expand into financial services.
Outlines
🚀 Rise of Southeast Asian Super Apps
In Southeast Asia, super apps like Gojek and Grab have become vital for daily life, much like Uber or other tech giants in the West. They started by offering ride-hailing and food delivery services, but have since grown to become essential platforms leading a digital payments revolution in the region. With a population of 650 million, Southeast Asia represents a vast market where mobile phones are the primary tool for accessing the internet.
📱 Tech Revolution in Indonesia
Indonesia, the world's fourth most populous country, is at the heart of this tech revolution. Small businesses like Roberto's have benefited immensely from linking up with digital payment platforms like Ovo, leading to expanded operations and increased sales. Individuals like Emma, a trained masseuse, have also been able to shift into more lucrative work thanks to apps like Gojek, dramatically improving their income.
💸 The Profitability Challenge
Despite their rapid growth, companies like Gojek and Grab are still not profitable. They are burning through cash as they aim to reach more users and offer a wider variety of services. However, they have realized that digital payments hold the key to long-term profitability. The financial transformation occurring in Indonesia goes beyond ride-hailing and food delivery, embedding itself into daily life in a way unimaginable in Europe or the U.S.
🌍 Digital Financial Revolution
In Indonesia, Gojek and Grab have been at the forefront of digital financial services, offering basic banking services like loans and micro-lending to unbanked individuals. Less than half of Indonesia's population has access to traditional bank accounts, and most transactions still rely on cash. However, by shifting to digital payments, companies hope to create a financial system that is more inclusive and accessible for all Indonesians.
🏠 A Cashless Society in the Making
Entrepreneurs like Primo, who used to run their businesses solely on cash, are now transitioning to digital payment systems, thanks to partnerships with platforms like Gojek. This shift is significant for small businesses in Indonesia, especially in rural areas, as it offers greater opportunities to grow and operate efficiently. However, the real challenge lies in changing consumer behavior, as many Indonesians are still accustomed to using cash.
📲 Digital Payments in Everyday Life
Digital payment platforms are rapidly spreading across all aspects of Indonesian society, including religious institutions and even government services. For example, mosques now accept a third of their donations through mobile apps. Despite this progress, some critics are concerned about the dominance of companies like Gojek and Grab, fearing that their growing influence could lead to monopolistic practices similar to those seen with Big Tech companies in the U.S. and Europe.
🏗️ Indonesia’s Evolving Tech Landscape
Indonesia's tech ambitions were once centered around manufacturing, but companies like Gojek and Grab have drastically shifted the focus to digital services. These companies, initially seen as copycats of Western tech firms, are now being looked to as pioneers in the next phase of the internet revolution. The future of technology and digital finance may very well be shaped by innovations emerging from Southeast Asia.
Mindmap
Keywords
💡Super Apps
💡Digital Payments
💡Southeast Asia
💡Unbanked Population
💡Financial Inclusion
💡Micro Lending
💡Ride-Hailing
💡FinTech
💡Cash Economy
💡Regulatory Challenges
Highlights
Super apps like GoJek and Grab are revolutionizing Southeast Asia’s digital economy, especially in mobile payments.
GoJek and Grab initially started with ride-hailing and food delivery services but have expanded into digital financial services.
Southeast Asia’s population of 650 million, with most accessing the internet via mobile phones, is a huge market for digital services.
In Indonesia, the world’s fourth most populous country, GoJek and Grab are significantly impacting small businesses by offering integrated payment services.
Business owners like Roberto Ko experienced rapid growth in sales after signing up with GoJek’s payment partner Ovo.
Digital platforms like GoJek are helping individuals like Emma, a masseuse, earn far more income than traditional jobs.
Big investors are pouring billions into these companies, though they are still in growth mode and not yet profitable.
Both GoJek and Grab recognize that the key to future profitability lies in digital payments, not just in service offerings.
GoJek and Grab are playing a major role in Southeast Asia’s digital financial revolution, especially in Indonesia.
Financial inclusion is being improved as GoJek and Grab offer basic financial services to the unbanked population.
Indonesia is a key FinTech hub, with a large population that primarily operates in a cash-based economy, presenting a massive opportunity for digital transformation.
Many small businesses and individuals in Indonesia are now digitizing their transactions, including accepting payments through mobile apps.
Traditional banks have struggled to reach the unbanked population, but platforms like GoJek are filling that gap with accessible financial services.
The shift to digital payments is slowly but steadily changing behaviors in Indonesia, with a growing acceptance of non-cash transactions.
Even religious institutions and government services in Indonesia are now accepting donations and payments via mobile apps.
There are concerns that the dominance of GoJek and Grab could lead to regulatory scrutiny, much like what their Western counterparts face in financial sectors.
Transcripts
they're super apps at the forefront of
mobile tax and they're not based in the
u.s. or China but Southeast Asia go
chicken grab started as uber clothes
carrying passengers and delivering food
now they're an indispensable part of
daily life but the rivals are also
leading online payments revolution is
this the future of digital banking
[Music]
Southeast Asia has a population of 650
million and for most people here the
only way to get online is a mobile phone
for Girja can grab that's a huge market
one that's helped them to grow into
multi-billion dollar companies Indonesia
the world's fourth most populous country
is where the battle is most intense
their apps have helped small businesses
like Roberto ko to expand and thrive
Brewery says that seems signing up with
payments provider ovo in 2018 her sales
have taken off she now delivers as far
as 20 kilometres away
[Music]
[Music]
Emma trained as a masseuse but the only
job she could find while living in the
same city as her children was to work in
a laundry earning just two dollars a
month by linking with go jack she's now
doing what she was trained to do and
earns about 200 times more patents had
to hurry to Peking rat Rattus Rattus
lima full uri puss and buy to a lettuce
what's more her husband johannes works
full-time as a go jack driver after
finding he could earn more doing that
than selling baby food the size and
scale of the opportunity hasn't gone
unnoticed big-ticket investors have
spent billions to fuel Gajic and graves
expansion but like other fast-growing
internet startups actual profitability
is an aspiration rather than a short
term or even medium term goal
the companies are burning through cash
as they attempt to reach more and more
consumers offering ever more options and
what they've realized is that these
services aren't the real prize the route
to profitability is the system that
underpins them all digital payments the
transformation taking place in Indonesia
goes beyond ride-hailing food delivery
even massages on demand to companies
that didn't exist a decade ago are
inserting themselves into the daily
lives of Indonesians in a way that is
inconceivable to those living in Europe
or America gorgeou can grab essentially
Southeast Asia's answered a big tech are
radically transforming the way money
moves around Indonesia this is a digital
financial revolution ovo works closely
with grab I may be biased but I think
Indonesia is the center of FinTech right
now we see what's happening the in
Europe it's about cards it's about Bank
if you look in China and India it's
really completed now with the the
FinTech evolution that went away the
next biggest society is Indonesia
grab-and-go Jack offer basic financial
services to those without a bank account
they're evil it can be topped up
anywhere but now they're moving into
core banking services like business
loans and micro lending I would like to
see a world where most Indonesians have
access to some sort of accounts and
accessing you know financial products
will be as easy as as you know you just
click on buy things but Indonesia's
population of 264 million is spread
across 17,000 islands less than half of
those people have a bank account and
even now most of Indonesia's economy
runs on cash digitizing will take a
radical change of mindset pomo runs one
of the most popular food stalls in the
central Javanese city of Semarang I
actually new job
my salary too young salmonella confirmed
Alisha Elena top Italian male 2
completely taken come up you can accept
he used to deal only in cash and he even
paid for a new home with $100,000 worth
in notes but primo has now gone digital
and runs his business almost entirely
through an app due to losses and through
to novocaine are Opaka ones I have to
sort of unit economy tomorrow we could
go for one would be fun traditional
banks have found it hard to provide for
people like primal but is linked with
go-jek makes them a far more attractive
prospect who people really - if you say
laputan around public official and a new
heritage in ghana under bank and
unbearable in country is so huge it's
more than 50 percent right now it's a
huge opportunity on its own I think our
enemy is cash people behaviors is still
toward cash it's actually a big
opportunity for us to change this
behavior toward a better payment
community these digital payment
platforms are spreading through the
economy the l.joe dban have been
Mayfield living on the streets of
simmering for more than a decade
dedicate our economy Mandela million you
look there where you belong
[Music]
Muraki
[Music]
yes Elena Qataris are separa damn
currents party artists artists like
selenium commodity could bury MJ - yeah
we need this current constant Omega T
goodbye
[Music]
religion is getting in on the act to the
Biderman mosque now gets nearly a third
of its donations through mobile apps
even government services can be topped
up by phone
critics say the two companies are
creating a jewelley with huge influence
like their beat tech peers in the US and
Europe this dominance may result in
greater scrutiny well I think the
regulatory challenges faced by big tech
are to some degree common across markets
insofar as their core use cases you know
ecommerce ride-hailing social messaging
and so on for the most part not really
stringently regulated to begin with
obviously moving into financial services
anywhere involves quite a lot of
regulatory oversight and as a
consequence many of these companies are
not really that well designed from the
outset for that level of supervision
Indonesia used to Center its tech
ambitions on manufacturing but within a
few years grab and go Jack have changed
that they may have started out as
copycats but it's now the Western peers
that are looking to Asia it's here they
can get a sense of what's possible in
the next phase of the internet
revolution
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