Gojek and Grab: the rise of the south-east Asian super app | FT

Summary

The 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.