Jakarta is a city of two faces. On one you find huge amounts of poverty while on the other, an emerging wealthy capitalist entrepreneurial environment. Jakarta, with its minimum legal requirements and capitalist environment, sees hundreds of innovators from far off places travelling there to earn their fortunes. With loose visa laws and a population of around 28 million, Jakarta is the ideal place in the far-east for a start-up. One example of this Indonesian entrepreneurship is displayed by Nadiem Makarim, a Harvard graduate who founded Go-Jek. Known often as the “poor-man’s Uber” as well as the Uber of the motorcycle world, the company allows you to direct a team of motorcycle drivers to arrange transport to destinations or to deliver goods. Ordered via a smartphone app, drivers can be easily recognized in their bright green jackets and hats. The employees are also vetted, trained, registered, and provide clean helmets to passengers, an improvement of the previous free-for-all style m
otorcycle taxi industry in Indonesia. This is a key example of business model innovation as it completely disrupted the way motorcycle taxis in Indonesia. It provides an entirely new value proposition, new cost structure, customer segment, customer relationships, and channels, making for a more desirable customer model to customers. The company has expanded to 35,000 drivers across Indonesia. In 2013, Indonesia’s private vehicle growth rose 11% while road growth was a negligible 0.01%. Go-Jek is a viable solution for those who either can’t afford to own their own vehicle or don’t have to patience to tolerate the already congested streets with the likelihood they will only get more congested.
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