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Willis Wee · · 5 min readGrab-Gojek, combined, could eventually be worth $72b
Dear Readers,
Does a merger between Grab and Gojek make sense?
The short answer is yes. But the more complete answer is, “it depends,” and I explore that in more detail below. Some of you might be wondering if I know something you don’t. Please understand that this piece is more of an op-ed: It’s mostly conjecture that’s backed by analysis, so take it with a grain of salt.
Photo credit: Meituan-Dianping
To start things off, here’s a table comparing the valuations of Grab and Gojek with similar ride-hailing companies. The figures for the two Southeast Asian startups are based on information that’s circulating in the media circles.
I’ve also included Meituan-Dianping because the way it operates now is very close to the super-app vision that Grab and Gojek are chasing. The Chinese online-to-offline company is a food delivery giant that also offers services like ride-hailing as well as ticket and travel booking. It also helps that Meituan’s data is public.
Table 1: Companies similar to Grab and Gojek
|
Company |
Est. annual revenue (US$ billion) |
Est. market capitalization (US$ billion) |
Revenue
multiple |
Notes |
| Meituan | $13.4 | $83.8 | 6.2 |
2019 annual revenue derived from |
| Uber | $13.4 | $59.7 | 4.4 | |
| Lyft | $3.5 | $14.0 | 4.0 |
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Does a merger between Grab and Gojek make sense? The short answer is yes. But the more complete answer is, “it depends.”
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