The merger between Grab and Gojek, if it happens, will have a strong impact on the ride-hailing market in Vietnam in particular and Southeast Asian countries in general.
Grab Holding and Gojek have made significant progress in finding an agreement to merge the two businesses. This will most likely be the largest merger in Southeast Asia if you only consider Internet business models.
According to an anonymous source, Grab and Gojek have narrowed the difference in opinion. Even so, part of the deal still needs to be negotiated.
The final details of the merger are being negotiated by the top executives of each company. The negotiation also has the participation of Masayoshi Son – a representative of Softbank, a major investor of Grab.
Most likely, Anthony Tan – the co-founder of Grab will become the new CEO of the business after the merger. Meanwhile, Gojek executives will run branches of the new company under the Gojek brand in the Indonesian market.
|The merger between Grab and Gojek, if any, will have a huge impact on the ride-hailing market. Photo: Trong Dat|
The source also said that even after the merger, the Grab and Gojek brands may be run separately for a long time. The ultimate purpose of the merger is for the new company to become a publicly listed business.
Representatives for both Grab, Gojek and Softbank declined to comment on the information. The negotiations are still running smoothly, they say, but it may not lead to a transaction. This agreement will require government-level approval as it may violate antitrust rules.
Over the past few years, both Grab and Gojek have been stuck in a fierce and costly battle for market share in ride hailing, food delivery and mobile payments. Investors are hoping the combination of these two companies will help reduce competitive costs and make it one of the largest Internet companies in the region.
Softbank, Grab’s major investor, has pushed the deal very hard, but is frustrated by the slow progress. The reason for this is the rival relationship and the personal conflict between the leaders of the two businesses.
Grab is present in eight countries and is valued at around $ 14 billion. With Gojek, this company is valued at about 10 billion USD and has been present in 5 countries including Indonesia, Singapore, Philippines, Thailand and Vietnam.
The fact that e-wallet services and e-commerce platform Shopee (both owned by Sea) appear and grow rapidly challenged the position of GoPay and Ovo (two companies backed by Grab). It is Sea’s rise as a formidable force in the e-commerce and digital payments markets that fueled the Grab and Gojek merger.
Tuan Nghia (According to The Straits Times)