Spire consultant, Dionisius Alvian, examines rise of the ride-hailing industry in Indonesia.

The popularity of ride-hailing has overtaken the traditional taxi and transportation services in Indonesia. Companies like Gojek and Grab dominate this industry with their ride-hailing, premium car, and food delivery services.

With an estimated market size of US$10.6 million, this industry faces a fair share of challenges. Intense competition, regulatory barriers, and mobility restrictions during the pandemic are some of the stumbling blocks. Adapting and innovating regularly to meet changing customer behaviour requires work.

However, the need for affordable transport services and the heightened use of smartphones boosted the growth of the industry. It enjoys a large customer base and government support for innovation which, in turn, promotes employment. What is wonderful about this industry is that it is not limited to ride-hailing. It expands to include food delivery, financial services and digital payment, stimulating growth and diversification.

To be successful, a ride-hailing company needs to have a good combination of reliability, innovation, customer experience, diversification and strategic partnerships. These factors would help them to stand out and win larger market share.

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