Get Detailed Insights into gojek's Business and Revenue Model

 

Not so far, but just a decade ago, people believed that using technology in daily tasks could make them lazy and be considered a luxury. Fast forward to today, we can see how people are getting obsessed with apps and software to get things done quickly. Whether they want to order clothes, make payments for utility bills, order groceries, or check reviews of their favorite restaurant, there is an app for everything, and this approach has surely changed business dynamics. 

 

As a result, the on-demand economy is continually flourishing because on-demand apps let people do everything quickly. These apps offer consumers instant satisfaction of all needs at the push of a button, something they have long wished for. Indeed, there are plenty of on-demand apps, and all are working well in their respective region, but Gojek dominates the market as it allows people to access multiple services within a single app. 

 

Many Western countries are still skeptical about the successful business model of Gojek, but this super application is making headlines in the Asian market and compelling other entrepreneurs to join the bandwagon. Gojek is a multi-purpose application and has since become one of the most popular on-demand apps and gained popularity globally. 

 

Gojek is more often referred to as "Super App" due to its multiple range of services and functionalities. Gojek is available for both iOS and Android platforms and can be downloaded from stores. Gojek is indeed successful, but if you are one of those entrepreneurs who want to know the secret sauce of this success, you are in the right place. 

 

Read on to learn where Gojek came from, how it works, and what business and revenue model it follows. Shall we? 

What is Gojek? A Well-known Indonesian Super App

Gojek is an online platform offering multiple services through a one-stop solution. Be it ride booking, making online payments, or getting food or groceries at the doorsteps, Gojek has covered them all. According to one of the trusted resources, Gojek's user base will be 38 million in 2020 and will keep increasing over time. 

 

Therefore, we can clearly imagine its tremendous need among Southeast Asian countries. Gojek has been offering multiple services through an app for almost 12-plus years. Introduced in 2010 in Jakarta, Gojek served only four services at the time of launch but now offers multiple services to users with real-time features and functionalities. 

 

With its Super App, Gojek was able to grow its ecosystem of merchants, drivers, and customers. Even many small and medium-scale businesses tap the Gojek platform to run their operations and reach a broad audience. At the same time, drivers and delivery providers also experience better earnings and, accordingly, better lives. 

 

How Does Gojek Work? 

Gojek is a super application that lets people access one or more services within the application, but it works differently for all the stakeholders involved. Let's see how this super app works for customers, delivery providers/drivers, and merchants. 

 

Gojek For Consumers

This is a step-by-step tutorial to help you learn how Gojek operates and how the app offers its services to users.

1. The customer must first search for the services they want to access. There are different services available in the app, including GoMart, GoShop, GoMed, GoFood, and many more. 
2. The consumer can now choose the service they want to use. For instance, if a user wants to order food from a restaurant, they have to choose GoFood first. Then, the consumer needs to add items to the cart and make a payment using the options given in the app. 
3. Once the cart gets ready for the selected service, customers are asked to make payments. 
4. After making the payment, the order is confirmed. Now, users can track the order in real-time and expect doorstep delivery in a stipulated period of time. 

 

This is how Gojek works for consumers. 

Gojek for Merchants

Gojek offers services in partnership with thousands of retailers who sign up to increase sales and grow their businesses. Gojek offers its merchants increased visibility and access to a wider range of customers while the merchants assist Gojek in expanding into new market segments. 

1. The Go-Food vendors will receive an alert on their Go-Biz app as soon as the customer puts an order. This is the initial stage of Gojek's service to the retailer. 
2. They will find it simpler to maintain the order's readiness when the driver shows up to pick it up.
3. The retailers then prepare the customers' specific order. The retailers can notify the customer via the app if something isn't available.
4. The driver then shows up to pick up the customer's order. Gojek has enforced that payments between drivers and merchants must be made from wallet to wallet.

 

This procedure is the same for practically all of Gojek's services. Every transaction is completed with the assistance of Go-Pay, Gojek's digital payment solution. Go-Biz makes it easier for business merchants to run their operations. 

Gojek for Drivers

Gojek offers delivery partnerships and drivers a straightforward method for partnering. The steps to understand how Gojek functions for drivers are as follows. 

1. To begin the registration process and learn more about how Gojek works for drivers, drivers must first download the Gojek application to their phones. 
2. The driver must now register with the service they choose to use after downloading and installing the app. 
3. They can sign up to be a delivery partner for different businesses or work as motorbike or taxi drivers. Drivers must provide their phone number when registering. 
4. A one-time password (OTP) is issued to the registered phone as part of the registration procedure in order to verify the registered number. 
5. Following registration, the driver must create an account and submit more details. To register with Gojek and learn how it functions for drivers, users must submit personal information and details about their vehicles. 
6. At the time of registration, a few required documents are required, including identification documentation and evidence of vehicle registration.

 

This is how Gojek works for all the stakeholders, keeps all of them connected, and delivers top-notch services to users. Now, without any ado, let's have a look at Gojek's business and revenue model. 

Business Model of Gojek

The multi-service app caters to various segments that come together to fetch the desired level of services. There are three stakeholders of Gojek's business model,

• Users
• Merchants 
• And delivery providers/ drivers

 

From the wide choice of services available to them, users can choose and obtain any service. Businesses that provide particular services receive notifications from users on smart devices, and they have the option to approve or disapprove requests before processing orders for clients. If the store owner needs the neighboring partners to pick up the order from the shop in order to deliver it to the consumer, they will notify them in advance.

 

A company's business model also includes value propositions for every stakeholder. Let's examine each of the ones listed below:

Value Proposition for Users

• The users can browse multiple services. They can choose a service by checking their reviews and ratings given by the previous customers. 
• Users who are willing to access a particular service can confirm the order or booking and make the payment as per their preferred payment method. 
• Consumers can book any service within the app without leaving their homes. Moreover, they can track all the transactions in real time and get to know the Estimated time of arrival. 

Value Proposition for Merchants

• Because they can access several company verticals through apps, entrepreneurs may manage their ventures easily. 
• These venture components include operating a company in multiple places, reviewing the order history, and monitoring business and employee earnings.
• Strong Online Presence: Business owners have the ability to generate a lot of excitement among their clientele. It's because people spend most of their time on social media, where they can publish different updates about their endeavors.
• Because they receive orders from many areas that they serve through an online program, the business owner's endeavor generates substantial earnings.

 

In this way, Gojek offers a significant value proposition to all of the stakeholders involved. Now, let's examine how Gojek makes such a huge revenue and what its major earning sources are. 

Revenue Model of Gojek 

Gojek has become an Indonesian Unicorn in a short span of time, and its revenue sources are quite impressive. Have a look at its major revenue sources. 

Commission From Merchants 

This is the major revenue source, as the company charges a fixed amount of commission from the merchants registered in the application. Moreover, they encourage them to run advertisements on the platform to get more buyers. The firm charges a commission per order and is entitled to let once they hand over the order to delivery partners. 

Commission from Users

The users can access multiple services within the application. For that, Gojek charges a commission at a fixed ratio of 10%. Yes, users need to pay a certain amount of tax to get their orders delivered to their doorsteps. Additionally, the platform charges a small amount of fees from customers for the rapid delivery. 

Subscription Services

Gojek offers its consumers subscription services as well. It offers a range of plans from which users can choose. It makes it possible for the subscribers to pay the brand on a regular basis.

 

Gojek makes sure it makes a decent profit on all of its services by using these monetization techniques. 

What is the Cost to Develop an App Like Gojek? 

Well, from the above discussion, it is clear that Gojek's business model and its sudden success are attracting many entrepreneurs to enter the superapp market. Developing an app like Gojek is an extremely good idea as these days people perform all the tasks online, and with the increase in modern technology, Gojek-like apps are in great demand. 

 

Now, the question is how much does it cost to develop an app similar to Gojek. As explained earlier, Gojek consists of many payment integrations, multiple stakeholders, multiple services, and much more. 

 

So it is obvious that if you want to have an app like Gojek with ultra-modern features and functionalities, you should contact an experienced Gojek clone app development company to know about its accurate cost. 

Basically, the cost depends on multiple factors, and it is very difficult to predict the cost without knowing the actual requirement. Some of the major factors that influence the overall cost are: 

1. Geographic location
2. Features and customization
3. Tech stack 
4. Dedicated team of developers
5. Skills and expertise 

 

But there are a lot of other things that must be taken into account as well. However, depending on a few factors and the effectiveness of the on-demand app development business you have associated with, the actual cost can be optimized. 

Wrapping Things Up 

After examining the business model of Gojek, if you are thinking about developing a super app like Gojek, then first, you need to have a solid plan and a brilliant idea of functionality. You must have a clear understanding of the features you want to integrate into your app. The future of on-demand apps like Gojek is promising, and if you want to capitalize on this growing market, then contact us and turn your Gojek clone app development idea into reality. From consultation to the development process to launch, we will help you develop a product that stands out in the market.