Gojek gets the go for Malaysia test runs

The six-month, proof-of-concept pilot programme will allow the government and participating firms to gather data and evaluate demand

Malaysia will now permit motorcycle-hailing firms such as the likes of Indonesia's Gojek and homegrown start-up Dego Ride to kickstart limited operations from January, Malaysia’s transport minister said on Tuesday, which could help complement Grab's Malaysia's broader ride-hailing marketplace.

Gojek’s backers comprise of Alphabet’s Google and Chinese tech companies – Tencent and JD.com. Both hailing firms will start operating on a proof-of-concept basis – in order to measure the demand for the service in over half a year, Anthony Loke Siew Fook said.

"Bike-hailing will be an important component in providing a comprehensive public transport system, as a mode for first- and last-mile connectivity," Loke said.

The preliminary project for Gojek in Malaysia would be limited to the Klang Valley, Malaysia’s most established region and the capital city, Kuala Lumpur, although the government would consider expanding it to other areas should there be spikes in demand during the 6 months.

Throughout this period, the government and participating firms will be accumulating data and evaluating demand, while simultaneously working on drafting legislation to govern bike-hailing, Loke said.

“Bike-hailing will be subject to similar regulations as laid out for e-hailing,” he said, referring to existing ride-hailing operations by companies such as Grab.

Youth and Sports Minister Syed Saddiq Syed Abdul Rahman in August presented the benefits of allowing Gojek in Malaysia, with emphasis on the job opportunities and growing support among small business sectors.

Gojek's co-chief executive, Andre Soelistyo, told reporters on Nov 2 that the company was preparing to expand its wheels to Malaysia and the Philippines.

If there's a success for Gojek, it will likely pose the biggest challenge to Grab, which monopolizes its e-hailing market after it bought over Uber Technology Inc's operations in South-East Asia last year.

"Bring it on!" Grab Malaysia said on Twitter after Loke's announcement.

"It is indeed healthy competition."