Lifestyle

No Surge Pricing On Go-Jek In S'pore (For Now) - Food And Parcel Delivery Services Might Come Next

After numerous launch delays, Go-Jek finally launched its beta ride-hailing app in Singapore on November 29.

Go-Jek has partnered with DBS to give their users priority access to the Go-Jek app during this beta phase; but due to the overwhelming registration, Go-Jek is granting access to DBS cardmembers in batches.

So if you’re one of the lucky few who are in the Go-Jek inner circle, congratulations!

For the rest, while we wait out for our turn, what can we expect?

With a new ride-hailing player joining the game, I think the main interest among users now lies in: a) whether Go-Jek’s fares are cheaper than Grab’s, and b) if Go-Jek will be rolling out other services beyond just ride-hailing.

Is Go-Jek Cheaper Than Grab? 

In terms of the pricing algorithm, Go-Jek’s website stated that dynamic pricing may apply for specific hours and areas.

But in an interview with Vulcan Post, a Go-Jek spokesperson said that their “beta phase will not include dynamic pricing”.

For now, we will be using a base fare and kilometres travelled. We will not be adding on an additional price per minute like other companies in this sector.

go-car pricing
Go-Car pricing

On that note, the base fare for a Go-Car in Singapore is $2.70, and users are charged an additional $0.65 for every kilometre. Its minimum fare is $6 and the fare on the app does not include ERP charges.

grabcar pricing
GrabCar pricing

In comparison, GrabCar’s base fare is $2.50, and it charges $0.50 per kilometre and $0.16 per minute.

Beyond the demand surcharge, other surcharges such as additional waiting time, toll charges, additional stops, and booster seat use also applies.

Currently, there doesn’t seem to be any surge pricing in place for Go-Jek, but we reckon this will change once the app fully rolls out to all Singapore users.

In line with their debut in Singapore, Go-Jek is also giving its users $5 discounts for the first two rides (an exclusive DBS promo).

This brings joy to many, considering that Grab has stopped pushing out promo codes since its acquisition with Uber early this year.

Beyond this DBS promo code, some users have reported that they have received additional vouchers from Go-Jek.

One thing to note though: these vouchers have short expiry dates, so this could be a strategy in which Go-Jek is forcing users to get onboard its platform and utilise the discounts.

More Go-Jek discounts / Screenshot from the app

When asked if Go-Jek will be pushing out discounts regularly, its spokesperson said that “DBS cardmembers will continue to enjoy privileges such as discounts on GOJEK’s ride-hailing service by way of promo codes.”

In a separate media briefing on its beta app launch, Go-Jek president Andrew Soelistyo said that while there will be promotions at the start, Go-Jek does not want to focus on these and pricing to be the firm’s key differentiator from its rivals.

We want to make sure that the consumer experience is the key differentiation, and also for drivers as well.

Will There Be Other Lifestyle Services Under Go-Jek?

According to a Go-Jek spokesperson, the Indonesian firm only has plans to launch its ride-hailing service here to “provide more choice … to consumers and drivers in Singapore.”

After launching our ride-hailing service, we will explore what additional services we should offer based on feedback from the people of Singapore.

Beyond ride-hailing, Go-Jek currently offers a suite of other lifestyle services such as food, grocery, laundry and parcel delivery, as well as on-demand massage, beauty and cleaning services, among others.

Go-Massage, Go-Jek’s on demand massage service

These services are parked under Go-Life, the lifestyle arm of Go-Jek.

To differentiate itself from Grab, its biggest competitor here, it would be game-changing if Go-Jek introduces its more unique services such as on-demand massage, beauty and cleaning services.

Other services such as food, grocery, laundry and parcel delivery are already commonplace in Singapore.

However, Mr Soelistyo expressed that there is a good chance that the company will be rolling out food and parcel delivery here.

In Indonesia, 80% of its food orders are from the smaller merchants or mom-and-pop stores as opposed to larger chains, he said. Applying this same model in Singapore would make it stand out from the existing food delivery players here.

He added that its GoSend package delivery service could also work in Singapore.

The market “has quite a deep e-commerce penetration with Amazon, Lazada and Shopee, so it naturally will be a value-added service”.

Beyond these lifestyle services, we also expect to launch its e-wallet Go-Pay in Singapore soon, though there are no plans to roll it out as part of the beta launch.

Go-Pay can be used to pay for any services on the Go-Jek app, and this roll-out would be a natural move because Go-Jek making payment seamless for users is at the forefront of improving the customer experience.

What else are you looking forward to from Go-Jek? Let us know in the comments section below!

Featured Image Credit: Go-Jek

 

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