Amazon in Discussions to Invest in Indonesian Ride-Hailing Company, Gojek
Ever since Uber first burst into the scene with its ride-hailing service and expanded into different countries, many other ride-hailing services have come up in different parts of the world. Over the years, the Indonesian ride-hailing service Gojek has managed to grow into one of the nation’s most valuable startups. Considering the vibrancy of the Indonesian economy, it is highly possible that the company is going to grow rapidly into one of the most valuable companies in the region. Moreover, the company is not only engaged in ride-hailing. It has its own food delivery and payments services as well.
Needless to say, the company has been attracting interest from many investors, and in a new development, it has emerged that e-commerce giant Amazon is now in talks to invest. Gojek is currently conducting funding round, and it has emerged that Amazon is interested in making an investment. According to sources which are close to the developments, things are being worked out so that Amazon can pick up a substantial stake in the most valuable startup in Indonesia. However, it is believed that the talks are not at the final stages and things could still fall apart eventually. The news about the potential investment from Amazon was first broken by the Wall Street Journal and has since been picked up by most of the mainstream business press. Gojek has refused to comment about the topic altogether.
Although Amazon does have a presence in Singapore, it should be noted that Indonesia remains the prize in the region and has a far more vibrant economy. Considering the fact that it has a population of 260 million, it is a surprise that Amazon has not yet been able to make a foray into the market. On the other hand, the biggest companies in China have made big bets in Indonesia and are currently some of the biggest players in the country’s startup scene. Hence, it is clearly a case of finally making an inroad into one of the most important economies in Asia at this point in time. That being said, it remains to be seen how the talks continue between Amazon and the representatives of the company before anything can move forward. However, if Amazon does invest in the company then it could mark a blockbuster entry into Indonesia.