A Go-Jek investment could lay the groundwork for Amazon to accelerate its expansion into Southeast Asia:
Go-Jek's positioning as a broader logistics platform makes it an attractive investment for Amazon. Amazon has been expanding its logistics network as a means of lowering shipping costs, which
$8 billion during Q2 2019. Amazon appears to be taking a two-pronged approach to developing these logistics capabilities:in February 2018, allowing third-party merchants on its e-commerce marketplace to ship packages through Amazon's network. And in June 2018, it introduced Delivery Service Partners to facilitate the expansion of its network; the program encourages people to become delivery partners with Amazon, providing such services as a leasing program for Amazon-branded delivery vans.
A Go-Jek investment could lay the groundwork for Amazon to accelerate its expansion into Southeast Asia. The e-commerce giant is currently only in Singapore, but other markets hold significant potential. The Indonesian market — home to 260 million people — had $12.2 billion in e-commerce sales last year, and is expected to reach $53 billion in sales by 2025, according to a Google report cited by the Wall Street Journal.
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