Japanese retail company Aeon Co. Ltd. will team up with Alphabet Inc.-backed ride-hailing startup PT Go-Jek Indonesia on a range of consumer-focused initiatives, including digital payment and home delivery, the Nikkei Asian Review reported Dec. 17, citing company sources.

From mid-December, Aeon will use Go-Jek's Go-Pay digital money to accept payments at its two malls in Jakarta, with plans to expand to three new outlets after 2019, the report said. Aeon will also offer home deliveries through Go-Jek's network of delivery drivers.

Go-Jek, one of Indonesia's largest startups worth more than $1 billion, hopes that partnering with Aeon will boost its market share in Indonesia, amid strong competition with Singapore's GrabTaxi Holdings Pte. Ltd., the Nikkei said.

The Jakarta-based company is said to have 100 million app users for its ride-hailing, home delivery and mobile payments. Similarly, Grab also offers cashless payments and deliveries.

Go-Jek also counts Tencent Holdings Ltd. and JD.com Inc. as its investors. In October, the company secured more than $1.2 billion in funding commitments from its backers.

Last month, Grab was reported to have invested in Lippo Group-owned digital payment platform Ovo to take on Go-Jek in Indonesia.