GoTo and TransJakarta join hands to integrate GoPay for convenient travel

GoTo Gojek Tokopedia and TransJakarta, a bus rapid transit system in Jakarta have partnered to deliver a more convenient integrated public transportation experience. Beginning January 2023, GoPay will be integrated on TransJakarta’s TiJe application, enabling consumers to select it as a payment option when buying bus tickets on the TiJe application, and create a seamless and convenient cashless payments experience.

Both companies will also work towards deeper integration in 2023. This will include allowing consumers to purchase TransJakarta tickets via GoTransit - a feature on the Gojek app that helps consumers plan multimodal trips - in the near future. To date, GoTransit continues to be well-received as a convenient multimodal trip planner, by enabling easier and more efficient commutes for consumers travelling within Jakarta.

In addition to making it more convenient for consumers to make payments, the collaboration complements the other ongoing partnerships that GoPay has established with public transportation providers in various cities, including Kereta Commuter Indonesia, the MRT in Jakarta, Trans Pakuan’s bus services in Bogor, the Trans Semarang bus service and Blue Bird. According to GoTo, these partnerships also continue to support GoPay’s growth, with the number of GoPay transactions for mobility services having increased by more than four times from January to November 2022.

Andre Soelistyo, CEO of GoTo, said that with mobility patterns in Jakarta returning to pre-pandemic levels, the company hopes that this collaboration and the ability to use GoPay in the TiJe application will bring about greater convenience for consumers when commuting.

"Going forward, we will continue to strengthen our integration with TransJakarta, with the aim of meeting even more needs for Indonesians and helping the Indonesian Government to reduce the level of traffic congestion in Jakarta. This is also part of GoTo’s ongoing commitment to create a convenient and comfortable public transportation experience for everyone," he added.

Meanwhile, Yana Aditya, president director of TransJakarta, said the partnership will also help it to grow TransJakarta’s user base, which stands at approximately 800,000 per day now. "As more people choose to commute via public transport in Jakarta, it is crucial for us to keep working with different industry players, including technology companies such as GoTo and GoPay. This will help us to continue providing the best service for consumers, especially when it comes to enhancing the mobility and payments experience," he said.

Separately, GoTo Gojek Tokopedia recently reaffirmed its commitment to sustained business growth and an accelerated path towards profitability amidst global macroeconomic uncertainty.  

During the recent Incidental Public Expose, GoTo group CEO, Andre Soelistyo, said the strong set of results it posted in the latest quarter displayed continued top-line growth and margin improvement, putting the company on a firm footing that will allow it to accelerate its path towards profitability. 

GoTo's gross revenue increased by 30% year-on-year to approximately US$378.5 million during the third quarter of 2022. Gross transactional value (GTV) grew 33% year-on-year to about US$10 billion.

That said, GoTo's share fell 6% on 22 November and earlier this week, CNBC reported that the company lost nearly 70% of its valuation since its IPO in April. At the same time, president Patrick Cao said GoTo's share price was recently impacted by macroeconomic conditions, a free float of shares, as well as other factors that are out of GoTo's control, The Business Times reported.

Despite all these developments, Soelistyo said during the Incidental Public Expose that its Q3 2022 was the result of key priorities including a focus on high-quality customers, sustainable, product-led growth, enhanced ecosystem synergies, as well as the disciplined management of incentives and operational expenses.

Recently-launched products such as the GoTo Plus subscription and the expansion of GoPay Coins as an ecosystem rewards currency underscore this approach, he said, helping the company to pursue greater monetisation while maintaining customer engagement.

According to GoTo, its GoTo Plus offering recorded more than 50,000 paying subscribers in a short period of time. Meanwhile, its investment payment product, GoPayLater Cicil, was also introduced on a limited basis to four million whitelisted consumers. Other offerings also included GoFood Hemat (Economy Mode) and GoTransit.

In Q3 2022, its GTV for on-demand services grew 24% year-on-year to reach about US$1 billion while GTV for eCommerce grew 15% YoY to reach US$4.4 billion. Quarterly GTV for its financial technology services grew by 78% YoY to hit about US$6.2 billion.

CFO Jacky Lo added that its solid performance to date reflects its business resilience and the strength of Indonesia’s economic fundamentals. GoTo has seen great improvements in the group’s contribution margin and adjusted EBITDA, with its on-demand services segment reaching contribution margin positive in September 2022, significantly earlier than expected. 

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