Yahoo Finance Gojek’s co-CEOs pledge quarter of salary to ride-hailing drivers
By Yoolim Lee
(Bloomberg) -- Gojek’s co-chief executive officers and senior managers have pledged to funnel 25% of their salaries over the next 12 months into a fund designed to support its drivers, merchants and partners during the coronavirus pandemic.
The Indonesian ride-hailing and food delivery giant will also redirect the budget it’s set aside for annual employee salary increases to the fund. That pool of money, combined with donations from top executives, amounts to roughly $6 million, a company spokesman said. The company didn’t specify how that money will be used.
Gojek becomes one of the first Southeast Asian startups to effectively announce management pay cuts as the car-hailing industry grapples with a deepening crisis. Hundreds of thousands of Gojek’s drivers and merchants have seen a drop in income after the pandemic spread across the Indonesian archipelago of 270 million, prompting authorities to impose partial lockdowns including in the capital of Jakarta.
“The fund will support drivers who are the lifeblood of our business and have become a vital part of how cities will cope under reduced movement,” co-CEOs Andre Soelistyo and Kevin Aluwi said in a statement. Both executives also own substantial stock in the startup.
While the Indonesian government has announced stimulus packages to counter the fallout of the virus, potentially widening the budget deficit to as high as 2.5% of gross domestic product, some economists have called for bigger government spending.
Separately, Gojek has teamed up with telemedicine app Halodoc to launch an online consultation service. Indonesia saw the number of confirmed coronavirus cases soar to 686 after as many as 107 new cases were reported on Tuesday, the biggest daily jump since the outbreak started this month.
© 2020 Bloomberg L.P.
