[JAKARTA] Indonesia is discussing a possible merger or acquisition between ride-hailing and food delivery firm Grab and its rival GoTo, the presidential spokesperson said on Friday (Nov 7).
The government considers the ride-hailing industry as strategic for job creation and vital to the economy. GoTo’s Gojek unit alone has more than 3.1 million online riders, and GoTo and Grab have dominated the Indonesian market for years.
A combined entity would hold a market share of over 91 per cent in Indonesia, according to data analytics company, Euromonitor International.
Indonesian government spokesperson Prasetyo Hadi said that a decision would come soon. “Online riders are economic heroes, driving the economy,” he noted.
Grab and GoTo did not immediately respond to request for comments.
Reuters has previously reported that Nasdaq-listed Grab was looking to strike a deal to buy smaller rival GoTo in the second quarter this year and had hired advisers to work on the proposed acquisition. A deal could value GoTo at around US$7 billion, a source close to the matter said earlier this year.
GoTo is 73.90 per cent-owned by foreign investors, including SoftBank Group and Taobao China Holding, a unit of China’s Alibaba Group, with the rest owned by Indonesian investors, according to its 2024 annual report.
