Is it better for Gojek to focus on improving our core ride-hailing service or diversifying into new verticals?

Introduction

The core trade-off we're examining is whether Gojek should focus on improving our existing ride-hailing service or diversify into new verticals. This decision is critical for Gojek's future growth strategy and market positioning. I'll analyze this trade-off by considering our current market position, user needs, technical capabilities, and long-term business objectives.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Gojek's current market share and competitive landscape. Could you provide insights into our position relative to key competitors in the ride-hailing space?

Why it matters: Helps assess the urgency of improving core service vs. exploring new verticals Expected answer: Strong in Indonesia, facing competition in other Southeast Asian markets Impact on approach: If market leader, might lean towards diversification; if not, focus on core service

• Business Context: Based on our financial reports, I assume ride-hailing is still our primary revenue driver. What percentage of our overall revenue comes from ride-hailing versus other services?

Why it matters: Indicates the potential risk and reward of diversifying Expected answer: Ride-hailing contributes 60-70% of revenue Impact on approach: Higher percentage might suggest caution in diversification

• User Impact: Considering our user base, are we seeing any significant shifts in user behavior or demands that might influence this decision?

Why it matters: Identifies potential opportunities or threats in user needs Expected answer: Increasing demand for integrated services (e.g., food delivery, payments) Impact on approach: Strong demand for integrated services could support diversification

• Technical: How scalable is our current technical infrastructure to support potential new verticals?

Why it matters: Assesses feasibility and cost of diversification Expected answer: Modular architecture capable of supporting new services with some investment Impact on approach: High scalability might favor diversification; low scalability suggests focus on core

• Resource: What's our current capacity in terms of engineering and product teams to support either option?

Why it matters: Determines our ability to execute on either strategy Expected answer: Teams are stretched but capable of taking on new projects with prioritization Impact on approach: Limited resources might suggest focusing on core service improvements