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Gojek to shut down several GoLife services

Jakarta Post - December 17, 2019

Adrian Wail Akhlas, Jakarta – Homegrown technology decacorn Gojek is shutting down the majority of its GoLife services due to a stagnant business performance, only around two years after launching the application.

Gojek vice president in charge of the GoLife app, Wesly Simatupang, said on Monday that most GoLife services had grown stagnant, excluding GoClean and GoMassage, which accounted for up to 90 percent of total orders in the GoLife ecosystem.

The GoLife app also features various other on-demand services of Gojek, including GoAuto, GoGlam, GoDaily, GoLaundry and GoFix.

"We realized that we need to review [GoLife services] to ensure continuous business growth in the long run. This decision is also to ensure that consumers can fully enjoy [the services] in the GoLife ecosystem," said Wesly as quoted by kompas.id.

Wesly said the company would cease the operations of GoLaundry and GoDaily by Dec. 31, while GoFix and GoGlam, which are still in the experimental stage, would be closed by mid-January.

Gojek would provide an opportunity for its partners impacted by the decision to sign up with Gojek's other services, such as GoRide, GoCourrier, GoPay merchant and GoTix merchant, according to Wesly.

In light of the burgeoning digital economy, critics have called for more profit-and-loss-oriented business practices by technology companies around the world rather than focusing on gross merchandise value, which has been an indicator for start-up valuations.

"We agree with those who say that we should stop burning money," Gojek's co-CEO Andre Soelistyo told a limited media briefing in October.

Source: https://www.thejakartapost.com/news/2019/12/17/gojek-to-shut-down-several-golife-services.html