Lippo and Sumitomo muscle in on Go-Jek’s territory with last-mile logistics bet
Monday, 03 Sep 2018 11:20 AM
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Ganging up on Go-Jek?

In a joint press release announcing the deal, Lippo and Sumitomo said that on-demand delivery has become “indispensable for finance, food, ecommerce, [and] automobile industries.” The two companies also said that they “intend to build RCL into the industry leader.”

One of RCL’s main competitors is ride-hailing firm Go-Jek, which provides an array of on-demand, logistics-related services including food delivery, couriering, and grocery shopping.

Lippo’s partnership with Sumitomo is the latest in a string of deals that seem to indicate that the family-run Indonesian conglomerate is encroaching on Go-Jek’s territory.

Ovo – the cashless payments platform developed by Lippo – has been able to easily acquire a large number merchants by virtue of Lippo’s retail and property assets, overcoming one of the main hurdles facing Go-Jek’s Go-Pay service. It has also integrated with GrabPay, the e-wallet offered by Go-Jek’s archrival Grab, which counts Lippo’s VC arm Venturra Capital as a shareholder.

In addition to the Ovo wallet, Grab is offering loans and insurance to Indonesian micro-entrepreneurs through its Grab Financial unit – directly competing with similar products that Go-Jek offers through Go-Pay.