Grab and Gojek discussing merger? Gojek says no

Grab and Gojek discussing merger? Gojek says no

There’s a rather shocking news going around that ASEAN ride hailing giants Grab and Gojek are discussing a possible merger. It came from The Information via Tech In Asia and cites sources familiar with the talks.

However, the two super app companies are still far from reaching an agreement as the respective valuations and post-merger shareholdings have to be ironed out, the report says. Apparently, Grab has told its investors that Gojek expects at least a 50% stake in the combined entity’s Indonesia business. Grab however wants overall control of the merged company across Southeast Asia.

This has been flatly denied by Gojek. “There are no plans for any sort of merger, and recent media reports regarding discussions of this nature are not accurate,” a spokesman told Tech In Asia. Grab declined comment.

Grab and Gojek discussing merger? Gojek says no

Rumours of a merger between the region’s tech champions have picked up since the departure of Gojek’s co-founder and former CEO Nadiem Makarim last October. He is now Indonesia’s education and culture minister. The two companies have been competing fiercely and burning lots of cash while at it, providing subsidies to drivers/riders and to entice customers with promos.

Both companies must look towards profitability, and Asad Hussain, mobility analyst at PitchBook, says that a merger “could significantly accelerate both companies’ paths to profitability, creating significant value for investors.”

“[The two] have been locked in a price war as they compete for new users, which has come at the expense of margins, even as both companies face pressure from investors to show a path to profitability,” he adds. Profitability might sound good to the two companies list of big name backers, which include Toyota, Microsoft, Mitsubishi, Google and Singapore’s Temasek. Of course, Masayoshi Son’s SoftBank has hands in both pies.

The analyst says that a combined Grab-Gojek could create the world’s third-largest ride-hailing business by market valuation, after Uber and China’s Didi Chuxing.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • oooff on Feb 26, 2020 at 7:28 pm

    Guess someone have Gojek by himself

    Like or Dislike: Thumb up 1 Thumb down 0
    • Abang2 Sheraton on Feb 27, 2020 at 9:01 am

      This is good for our UiTM graduates who cannot find jobs. Suitable for their calibre

      Like or Dislike: Thumb up 19 Thumb down 3
      • Taik Muafakat on Feb 27, 2020 at 9:43 am

        Grab food riders always using Federal Highway fast lane cause they don’t know how to obey laws. Pls use bike lane okay?

        Like or Dislike: Thumb up 5 Thumb down 4
      • Kuinosan on Feb 27, 2020 at 10:30 am

        In developed countries, all jobs are respected. Road sweeper, plumber, hawker, gojek rider etc.

        Like or Dislike: Thumb up 11 Thumb down 0
  • Semi-Value (Member) on Feb 26, 2020 at 8:59 pm

    urgh. no. enough with this dear tan chong.

    Like or Dislike: Thumb up 4 Thumb down 1
    • Abang2 Sheraton on Feb 27, 2020 at 9:10 am

      Many will protest because Gojek you have to peluk the rider……3rd world mentality hard to shed

      Like or Dislike: Thumb up 11 Thumb down 4
      • Ghani on Feb 27, 2020 at 10:05 am

        Gojek comes from the country with largest majority in ASEAN. Apa kebodohan 3rd world mentaliti ini?

        Like or Dislike: Thumb up 7 Thumb down 0
      • hantu raya on Feb 27, 2020 at 10:36 am

        takde beza dgn org2 tua protest/ marah kalau anak2 pompuan dioarg berpeleseran dgn mat rempit. Dan kenapa tidak-nye? kalau kau suka saudara2 pompuan kau tembap tetek dia dkt org lain dgn mudahnya, jgn protest, jgn halang pompuan2 muda kau berdating dgn mat2 motor (mat motor suprbike pun 2×5, infact lagi setan). biar je arg lain ambik kesempatan. progresive lah katakan…

        Like or Dislike: Thumb up 2 Thumb down 0
    • Abang2 Sheraton on Feb 27, 2020 at 9:39 am

      In Indonesia they are more liberal. Gojek passenger can peluk the Gojek rider.

      In Malaysia, this is haram and there will be lots of protest.

      First to protest will be the abang abang from sheraton.

      Like or Dislike: Thumb up 1 Thumb down 3
  • Kerajaan Pintu Belakang Gagal on Feb 26, 2020 at 9:23 pm

    Grab and Gojek is good for our youths. Give them jobs so that they wont rempit in Kesas everynight.

    Like or Dislike: Thumb up 18 Thumb down 1
  • Safety First on Feb 26, 2020 at 10:47 pm

    With greenhorn busybody mini-star Saddiq no longer calling the shots, no need for the next gomen to continue with allowing Gojek to come in anymore. We need better and more proper transports, not some suicidal bike pillion riding courting death some call a mode of transport. I call it a mode of transport to the afterlife.

    Like or Dislike: Thumb up 12 Thumb down 1
  • Why’s grab trying to monopoly this service biz

    Like or Dislike: Thumb up 1 Thumb down 0
  • Muafakat Nasional on Feb 27, 2020 at 8:47 am

    I always give 50 sen to my Grab boy when he delivers food to me. He is so happy to receive the 50 sen. Good boy!

    Like or Dislike: Thumb up 13 Thumb down 1
  • vivizurianti on Feb 27, 2020 at 10:05 am

    Syukur x1000 for having Gojek. Now many unnemployed university grads will have jobs as taxi-riders. Abang-abang graduate will have brighter future.

    Can we have University Degree programme in Public Relation & Ridership? Perhaps Diploma in Ridership Business Admin?

    Like or Dislike: Thumb up 0 Thumb down 0
  • hafiz on Feb 28, 2020 at 9:33 am

    Customer lose ….full thumb down. Anti competition act must be adopted here….

    Like or Dislike: Thumb up 0 Thumb down 0
 

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