Grab and Gojek riders on the streets of Indonesia / Photo credit: 123RF
Grab and GoTo Group have reopened merger talks four years after their initial talks, Bloomberg reported, citing people familiar with the matter.
The sources said that Grab and GoTo are in preliminary discussions on a variety of options. One possible scenario is for Grab to acquire GoTo using cash, stocks, or both.
According to one source, GoTo has been more open toward the possibility of a merger after Patrick Walujo’s appointment as CEO last year.
The merger would have far-reaching effects on Southeast Asia’s ride-hailing and food delivery spaces. Both companies may hope to stem their ongoing losses amid their long-running rivalry.
In late 2020, both companies reportedly agreed on several parts of the potential deal. However, Gojek eventually chose to merge with ecommerce unicorn Tokopedia and went public as GoTo Group.
Tokopedia, however, has since merged with TikTok parent ByteDance, marking TikTok Shop’s return to Indonesia.
Meanwhile, Grab is reportedly in talks to acquire food delivery platform Foodpanda. Should the deal go through, it would make Grab Southeast Asia’s undisputed food delivery leader.
See also: TikTok Shop gets winning hand in Indonesia via Tokopedia mega deal
Editing by Dhania Putri Sarahtika
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