Southeast Asia’s “two top” application-based economic platforms “Grap” and “Gojek” have pushed for a merger, raising market monopoly concerns.
According to Bloomberg News on the 9th, rumors of a merger between Grab and Gojek have risen rapidly since early this month. The two companies originally started with car and motorcycle ride sharing services and now expanded their businesses to enable various services with one app, ranging from food delivery, delivery, and online shopping.
Grab, based in Singapore, started its business in 2012 and stood as Southeast Asia’s No. 1 company when it acquired the Southeast Asian business of “Uber,” a global ride-sharing company, in March 2018. Gojek, which started in Indonesia in 2010, has made inroads into neighboring countries such as Vietnam, Philippines, Thailand, and Singapore, and has grown into the first “decacorn” company in Indonesia, which means start-ups worth more than 10 billion U.S. dollars.
Softbank Group, a major investor in startup investment, is known to lead the merger of the two companies. “Grab and Gojek have narrowed their differences to merge,” said two company officials, who spoke on condition of anonymity. “With the participation of Softbank Group Chairman Son Jeong-eun, who is a major investor in Grab, high-ranking officials from both companies are coordinating the details. It is said that Anthony Tan, CEO of Grab, will lead the entire organization after the merger, but that Gojek executives will continue their business in Indonesia under the Gozek brand. The news agency explained that Grab worth $14 billion and Gozek worth more than $10 billion aim to become a listed company through the merger.
However, there are concerns that the merger will monopolize the Southeast Asian market if it becomes a reality. Critics point out that the merger between the two companies will be a loss to users as they have received various benefits, including discounts, as the two companies have been fiercely competing to attract customers. Indonesia’s 먹튀사이트 Competition Supervision Committee (KPPU) said, “All companies’ choices can affect the market structure, especially mergers and acquisitions (M&A),” adding that it is closely watching rumors of the merger between Grab and Gozek.