Mega-Merger in Indonesia: Gojek and Tokopedia Officially Announce the Establishment of a Holding
Although we already discussed the (then-looming) merger between Aplikasi Karya Anak Bangsa (Gojek) and Tokopedia in detail in our January 2021 report, we do feel it is justified to cover this topic once more – albeit slightly more succinct this time – since it is now official (announced on 17 May 2021) that both sides re to merge, thus creating a massive entity (named GoTo) with an impressive and unique ecosystem.
In fact, we may see GoTo conducting an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) before the end of 2021. This, too, will be something massive considering GoTo could instantly become the second-biggest listed company on the IDX in terms of market capitalization (behind Bank Central Asia, or BCA).
Gojek, which is Indonesia’s only homegrown Decacorn (a term that refers to a tech startup company that is valued above USD $10 billion) and has evolved into a super-app over the past decade, is primarily known for ride-hailing services (motorcycles and cars), food deliveries, and its e-wallet (Gopay). While in the past it was common in a city like Jakarta to see an ocean of blue-colored cars (BlueBird taxicabs) on the busy city streets, today it is the green color of Gojek drivers’ coats that is dominant (as well as the green color of rival Grab). Gojek has become a huge success as it offers innovative and efficient solutions to consumers, particularly related to transport, food delivery, and payments. For instance, there’s no more need to go out, in the heat or rain, to find a taxicab or motorcycle taxi (ojek). Instead, Gojek drivers now come to your location to pick you up. Moreover, because the price of the ride is determined in advance, you do not need to be concerned that the driver will deliberately take a detour so the meter (price) will rise as high as possible. A pre-determined price now means that it is also in the driver’s interest to take the fastest route (thereby saving on fuel expenses and allowing him to get another customer as quickly as possible).
Gojek has been a major driving force behind the rapidly developing digital economy of Indonesia that is estimated to be worth (at least) USD $125 billion by 2025.
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Read the full article in the May 2021 report. This report can be ordered by sending an email to info@indonesia-investments.com or a message to +62.882.9875.1125 (including WhatsApp).
Take a glance inside the report here!
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