GO-Note from the field
I am in Surabaya now conducting field research for the project. I interviewed GO-JEK's Chief Human Resources Officer (CHRO) last month in Jakarta and got useful insights into various incentives that GO-JEK is planning to initiate for the benefit of its partners (drivers). Some incentives like credit assistance for purchasing smartphones and motorbikes are already in effect, as is a tie-up with a private insurance provider for affordable health/accident insurance for the partners in Jakarta. A creative innovation is the system of GO-PAY, to which one can add money, including the change after paying for a ride. Paying with GO-PAY is almost always cheaper than a direct cash transaction. GO-JEK plans to scale this up into a much larger e-wallet/mobile-money system (quite similar to M-Pesa that began in Kenya, and Paytm in India), which can then be used for various kinds of purchases (and not just from GO-JEK's range of services); it is also being seen as something that is likely to enable low-income persons build up savings and credit histories.
Other programs like mortgage assistance (deductions from payments) to purchase homes are just being launched in Jakarta as pilot-projects. These will be rolled out later in other cities; GO-JEK currently operates in over 25 cities nationwide. Earlier today, I also interviewed the person in-charge in Surabaya of GO-FOOD, a food delivery service that works through the GO-JEK partners. She also explained the structure for 'bonuses' for the partners, which incentivizes rush hour performance and hot-spots (which are actually cold-spots, i.e. low supply locations). In Surabaya, there is a tie-up with the universal state health insurance program, BPJS Ketanagakerjaan, which is made very affordable for low-income employees, to provide accident insurance for GO-JEK partners. Other smaller incentives for motorcycle repairs, etc., also exist. In Surabaya, every day about 200 drivers are registering, called 'on-boarding', to work for GO-JEK (last year over 800 drivers came on board on one particular day); based on growing demand, the target though is about 260 per day. What is interesting is that women too are signing up to drive for GO-JEK, and about 1% of the active (at least one ride per week) partners (about 10,000) in Surabaya are women. I saw about six or seven women today queing up to get on board. This is despite GO-JEK not 'actively' recruiting women, a question I had asked the CHRO. GO-JEK is soon going to start operating in Surabaya's adjacent jurisdictions that constitute the larger urban/peri-urban region as well as other smaller urban centers of the province.
I have now ridden GO-JEK and Grab, a competitor, but not Uber's motorcycle taxi, a few dozen times in Jakarta, Surabaya, and Bali. On over half those occassions, I have had quick but somewhat detailed conversations with the drivers about their opinions and experiences. They have included both full-time and part-time drivers (for whom GO-JEK is the second or even third job), and the cross-section is quite varied—from former factory or private firm employees to former pushcart vendors to current college students and primary school teachers. Interestingly, I am yet to meet a person who does is not happier with his (I have encountered only male drivers yet) current arrangement or regrets having left the previous employment. This general buoyant sentiment is also echoed in the results of two surveys that have emerged within the last few months. I am waiting to see what my survey will reveal, which will begin sometime next week. Two smart and enthusisatic young women (master's students in Architecture), Amiria and Anita, have agreed to conduct the survey for me. I have briefed them and they are excited to be part of the research. It will be exciting to see especially how migrants feel about working for GO-JEK. In my opinion, a really progressive move on GO-JEK's part has been that it does not restrict employment only to official city residents, i.e those who have a resident identity card, the KTP.
Over the next few weeks the survey will get done. Thereafter, the analysis will begin to reveal interesting facts, which I shall periodically post here. Thanks much to all the funders of this project!
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