Gojek and Grab Fight for Financial Market
To target the financial market, Grab established the Grab Financial Group in March 2018. This business unit focuses on developing three services: payment, protection, and loan.
Grab Head of Financial Services Ankur Mehrotra said the opportunity of the financial business market is 20 times greater than the ride-hailing service. The reason is that about 438 million people do not have a bank account in the Grab coverage area, which is Southeast Asia.
Despite its vast market opportunities, Grab is targeting more consumers by providing a variety of services in Southeast Asia. “We talked about 20 times of the ride-hailing business, in terms of market opportunities,” Ankur told Kr-Asia recently.
This Singapore-based startup is also working with many companies, such as Kasikornbank Pcl from Thailand and Mastercard as well as receive additional capital from Experian, an Irish consumer credit rating.
In early 2019, Grab also collaborated with ZhongAn Technologies International Group Limited to form a joint venture of the digital insurance marketplace in Southeast Asia. “The launch of this insurance platform is part of our commitment to become the leading everyday SuperApp in Southeast Asia,” Grab President Ming Maa said last January.
This company providing on-demand services is also rumored to explore collaboration with financial technology (fintech) payment companies from China and the US: Ant Financial (Alipay) and Paypal. This collaboration is intended to strengthen Grab’s financial services through the Grab Financial Group.
Gojek Group CEO Nadiem Makarim also mentioned his company efforts to strengthen financial services. “Now is the time for the evolution of GoPay and financial services,” he said when launching the new Gojek logo called Solv.
Nadiem once mentioned the total transaction or Gross Transaction Value (GTV) on its platform reached US$ 9 billion or around Rp 126 trillion in 2018. The achievement was up 13.5 times compared to 2016.
GoPay Head of Corporate Communication Winny Triswandhani said about half of the transactions on the Gojek platform use payment services from GoPay. The transactions outside the Gojek app service also grew by 25 times over the past year.
GoPay also works with more than 300 foundations and mosques to provide digital donation services. “Donations through GoPay rose 400 times from July 2018 to June 2019,” Winny said.
Gojek teamed up with PasarPolis, an insurance technology (insurtech), to release GoSure. This feature is available in beta and offers new travel insurance products to users.
In 2017, the two companies had launched insurance services for driver-partners called GoProteksi. In August last year, PasarPolis obtained series A funding from Gojek, Traveloka, and Tokopedia.
Digital Content Becomes A Newly Contested Market
Digital content such as games through smartphones (mobile games) to video streaming is the third service that will be explored by Gojek and Grab. Gojek released GoGames with three features: top-up, television, and gameplay recipes.
Based on data from the Mobile Marketing Association (MMA), there were 60 million game players in Indonesia last year. The number is estimated to reach 100 million by 2020.
Head of GoGames Timothius Martin said top-up through GoPay for games grew 40 percent per month since 2018. However, he admitted the transaction was not the company's primary target.
Last June, Gojek also introduced GoPlay, a video streaming platform. This service has been developed since the beginning of 2018.
Like Netflix, which produces some of its shows, contents that appear through GoPlay will be made internally through GoStudios. Several films supported by GoStudios are Kulari ke Pantai, Keluarga Cemara, Buffalo Boys, Kucumbu Tubuh Indahku, Aruna dan Lidahnya, and 27 Steps of May.
Meanwhile, Grab has released Grab Daily since the middle of last year. The decacorn, through this feature, provides a variety of content. Collaborating with Yahoo, Grab delivers the latest news and schedule of sports matches in Singapore, Malaysia, and the Philippines.
There are also reviews of restaurants or shopping centers nearby. Users can play simple games, fill out polls about something interesting, and take personality quizzes through its feature.
Regarding video streaming, Grab cooperated with Hooq, a video on demand (VoD) service company. It was released in the first quarter of 2019 in Indonesia and Malaysia.
Seeing how aggressive the two companies to get new funding, Gojek-Grab battle may not stop at the three services. They are always racing on every track.