This archive report was first published on 30 August 2019.
Amazon Eyes Partnership with Indonesian Ride-Hailing Firm Go-Jek ¶
According to the Wall Street Journal, Amazon has engaged in preliminary talks with Indonesian ride-hailing firm Go-Jek to create a partnership. The potential deal could see Amazon make a capital investment in Go-Jek, which has expanded its services beyond ride-hailing to include food and grocery delivery, mobile payments, and courier services.
Go-Jek's positioning as a broader logistics platform makes it an attractive investment for Amazon, which has been expanding its logistics network to lower shipping costs. Amazon's logistics network has surpassed $8 billion in value during Q2 2019, and the company is taking a two-pronged approach to developing its logistics capabilities.
Amazon is developing full-scale logistics operations, including its Shipping with Amazon service, which launched in February 2018, and its Delivery Service Partners program, which encourages people to become delivery partners with Amazon. The company is also partnering with logistics operators, such as its $575 million funding round for London-based food delivery company Deliveroo in May 2019.
A Go-Jek investment could lay the groundwork for Amazon to accelerate its expansion into Southeast Asia, where the Indonesian market alone had $12.2 billion in e-commerce sales last year and is expected to reach $53 billion in sales by 2025, according to a Google report cited by the Wall Street Journal.
