Uber competitor Go-Jek is about to team up with Indonesia’s largest taxi company

Drivers of motorcycle-taxi apps like Go-Jek are increasingly becoming part of Jakarta’s cityscape. Photo credit: Tempo.

Blue Bird, Indonesia’s largest taxi and transportation company, is teaming up with Go-Jek, Indonesia’s homegrown app-based ride-hailing company.

“The collaboration between Go-Jek and Blue Bird will cover aspects of technology, payments, and promotions,” the company said in a statement today.

All initiatives, it went on, will focus on improving transportation services through mobile solutions for people across Indonesia.

Go-Jek’s smart maneuvers

The collaboration announcement is another twist in Indonesia’s transportation saga, but doesn’t come as a surprise. Go-Jek has cleverly maneuvered itself into a position where it is the most likely tech partner for Blue Bird.

The protests didn’t succeed in getting Grab and Uber banned.

Earlier this year Jakarta was rocked by a conflict between the taxi industry, Uber, and Grab. Blue Bird was one of the companies criticized for instigating street protests against the ride-hailing apps.

In the end, the protests didn’t succeed in getting Grab and Uber banned, and the government came up with a new set of rules, under in which ride-hailing companies are allowed to operate.

Go-Jek managed to stay out of the limelight in this conflict – after all, it only offered two-wheeler transportation at that time and the rules were specific to four-wheelers.

Go-Jek is a popular app for hailing motorbike taxis in Indonesia’s capital. It promises a safer ride than the tens of thousands of riders who pick up passengers in the city each day.

But sure enough, just after the regulations were released, Go-Jek announced its own foray into cars with the launch of Go-Car. It was a bit late in the game, considering GrabCar and Uber already hold strong positions in that segment, but it’s a clear signal that Go-Jek’s ambitions extend beyond motorcycle transportation.

In the meantime, Blue Bird opened up to the idea of using tech to improve transportation services, even announcing plans to “uberize” its own fleet.

Instead of “uberizing,” it turned to Go-Jek. As the two local firms, it made sense for them to team up to form a strong alliance against Grab, which is from Malaysia, and Uber from the US.

Go-Taxi?