Business Environment

Gojek lays off 430 employees as GoLife business closes


GoClean and GoMassage to close on July 27

In the wake of the new corona, car-dispatch giant Gojek has announced that it will close GoClean, where you can order cleaning, ironing and car washing, and GoMassage, where you can order in-home massages, on July 27, and lay off 430 employees, or about 9% of its workforce (PHK = Pemutusan Hubungan Kerja).

The reason for the closure of the service is because "the corona pandemic has led to limited services at close range and physical contact (pandemi membatasi interaksi jarak dekat dan kontak fisik)," which has led to a decline in service usage.

I don't bother with cleaning, laundry and cooking, but ironing is the only thing I'm not good at since I was a bachelor, and for two hours We have been using it for many years, partly because of its reasonable price of only Rp. 90,000! .

Since this will be gone, I'll have to be prepared to do it myself, but the GoLife business The downsizing began last December, with GoGlam (make-up), GoFix (repairs), GoAuto (auto repair), GoDaily (daily necessities like gallons of aqua and LPG gas cylinders) (shopping) and GoLaundry) have been eliminated, accounting for 90% of GoLife's sales and Only GoMassage and GoClean, which were there, remained.

As cleaning and massage are the quickest way for ordinary Indonesians to get a job, and as many users on social networking sites have expressed regret for the closure, I believe that after the corona disaster settles down and the PSBB is lifted, there will be enough demand and supply for this sector to probably bring in another online service.

Business Strategy of Selection and Concentration

GoJek was just after raising funds from Facebook and PayPal at the beginning of June, which may have reflected the wishes of its shareholders, but now that GoLife as well as GoFood Festival, a food court service, have been shut down, and rival Grab has also cut 5% (360 jobs) in its non-core business, the Indonesian online app business entity seems to be going through a selection and concentration strategy to survive the coronation disaster.

The three core businesses that GoJek says it will concentrate on are all future growth industries in Indonesia, and when it comes to e-money, many of its rivals are already scrambling to compete in the domestic market.

Rivals for GoJek's core business

  1. transport:transportasi (GoRide・GoCar・GoSend)⇔Grab
  2. food delivery:pesan antar makanan (GoFood) ⇔Grab
  3. electronic money:uang elektronik (GoPay)⇔OVO / Dana / ShopeePay / LinkAja / Moka(Acquired by Gojek)

Speaking of "choice and focus," I used to read about General Electric Company's CEO Jack Welch's book Winning - Winning Management is a famous and and GE has grown exponentially by focusing only on businesses that can be ranked number one or two in the world. However, while this strategy has the advantage of maximizing business value and reducing costs, it also has the advantage of maximizing long-term demand and The disadvantage of misjudging the rate of growth of its rivals is that there is a significant loss in the event of misjudging the rate of growth of its rivals.

Right now, GoJek is focusing on corona protection for the drivers and vehicles it serves, and it is trying to differentiate itself from its competitors by building up the trust of users by improving safety.

Uber pulled out of Indonesia in 2018, making it a two-strong market with Grab GoRide, by the nature of being a motorbike taxi, can't keep up with social distancing. GoRide drivers carry a shield on their back, and users are required to wear a mask and, of course, a helmet You're also encouraged to bring your own, and you can check your driver's temperature on the app. GoCar allows you to check the cleanliness of your car, which indicates how clean and disinfected it is.

Due to the curfew following the PSBB (mass social restriction) enacted in the wake of the Corona disaster, delivery service GoSend has increased by 80% and everyday shopping service GoShop has more than doubled, and GoJek will now make driver temperature and cleanliness checks available to all services via the app for reference in order to enforce safe operational service standards.





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