Last night, the Southeast Asian startup ecosystem was hit with another devastating blow as gojek announced the imminent shutdown of its GoLife and GoFood Festival services, followed by the lay-off of 430 employees.

The shutdown of these services is strongly related to the impact of the COVID-19 pandemic, which had prevented customers from using services that involve direct person-to-person contact.

The news came only days after its rival Grab announced theirs. Prior to this, fellow regional unicorn Traveloka has also been reported to lay off its workforce as the ongoing pandemic hits the travel and tourism industries hard.

Many have seen the COVID-19, and the impact it brings to various aspects of life, as a trigger to change. From government institutions to businesses to individuals, we are all encouraged (if not forced) to look at the status quo and decide how we can do better.

As we mourn for fellow startup community members, perhaps it is time to start questioning: What is next for Southeast Asian unicorns, particularly one as significant as gojek?

Also Read: Afternoon News Roundup: JD.id becomes Indonesia’s 6th unicorn after funding from gojek

One thing at a time

In the past few years, unicorns such as gojek and Grab have been dubbing themselves as a super app platform. While these companies started off as a platform for on-demand transportation, in the next stages of their product development, it evolved to include a wide range of services from finance to entertainment.

To be honest, as much as I want to believe in it, I have always been skeptical of the idea of a super app. At least, of the extent of its success.

I was there in Jakarta when gojek –whom I first got introduced as the courier service my previous company was a regular user of– announced a flat tariff of IDR10,000 (US$0.7) per ride as part of a Ramadan promotion in 2015. The platform’s popularity skyrocketed; Grab (known as GrabTaxi back then) also introduced its motorbike-based service around the same time.

The market was never the same afterwards. In addition to being involved in price wars, the two companies followed by introducing more and more new services until the super app jargon was coined.

Here is the reason why gojek is so successful in what they are doing: The core of their business revolves around solving a problem that affects everyone’s lives –having access to affordable and reliable public transportation. Everybody needs transportation, and they need it on a daily basis. It is almost natural that GoRide, the company’s ride-hailing service, becomes their most popular service.

But their on-demand massage therapist and manicurist? Well, I have never met anyone who needs to have a manicure, like, twice a day.

Also Read: South Korea is nurturing a fast-growing herd of unicorns. Here is how they do it

The next move

Within the past few years, more and more unicorns are dipping their toes into fintech. With this pandemic, as more customers embrace digital payments to avoid the use of cash, the opportunities could not be more exciting.

gojek has recently announced an investment from Facebook and PayPal — which is said to include the integration of PayPal to the company’s platform.

Facebook itself has launched WhatsApp Pay in emerging markets such as Brazil. While the service in Brazil has been suspended, so far there is no indication that it will hamper its upcoming launch in Asia.

My guess is that this is the route that Facebook is going to take with its investment into gojek: Having GoPay integrated into the platform, or something along that line. This move makes a lot of sense as both WhatsApp and GoPay are some of the most widely used platforms in Indonesia.

Putting the head in the game

The pandemic has forced businesses to adapt by changing their direction, becoming more focussed on what they need to achieve this year. For many, efficiency is the name of this game. Instead of burning money to build good-to-have products, it is time to focus on products that customers actually need. The kind of products that people need to use regularly. A more steady revenue stream.

In the context of our unicorns, we predict that they will continue with their super app strategy. But instead of branching out into launching all sort of services, they will focus on revamping existing ones. Making them stronger and more thorough. They will also collaborate with various parties, most likely their own investors.

It is time to trim those extra fats so that you can live a healthier life.

—

Image Credit: Daniel von Appen on Unsplash

The post Post-pandemic, we are going to see a slim unicorn appeared first on e27.