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Ride-hailing and food delivery company Grab is reportedly in advanced talks to merge with Indonesian competitor GoTo. The companies reportedly seek to curb years of losses in Southeast Asia’s competitive market.
According to Reuters, a new round of merger talks, which were last held in 2024, resumed last December as investors were eager to reach an agreement this year. Anonymous sources who spoke to Reuters reportedly said the deal may not be reached as previous negotiations had fallen through.
According to Bloomberg, the merger could see a valuation of over US$7 billion (Rp 114.128 billion). GoTo’s shares have reportedly advanced as much as 6.2% in Jakarta on Tuesday following reports of the merger, while Grab shares have declined about 4% in New York thus far in 2025.
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MARKETING-INTERACTIVE has reached out to Grab and GoTo for more information.
Despite the company’s concern over potential losses, GoTo has seen growth in its core gross transaction value (GTV). The company’s financial report, released in October last year, showed that the group GTV increased by 74% year-on-year to Rp72.0 trillion in the third quarter results, while the overall group GTV rose by 37% to Rp137.4 trillion.
Gross revenue grew by 34%, reaching Rp4.7 trillion. Moreover, the Group’s adjusted EBITDA was positive at Rp137 billion, marking a significant shift from a loss of Rp559 billion in the previous year. This growth was supported by a 21% rise in monthly transacting users across the GoTo ecosystem.
Patrick Walujo, CEO of GoTo Group, expressed satisfaction with the performance, citing the effectiveness of the company’s ecosystem strategy in attracting users and enhancing profitability. Walujo projected the Financial Technology segment to achieve positive adjusted EBITDA in the next quarter.
Back in 2023, GoTo also forged a partnership with global short-form video sharing platform, TikTok, in a strategic move to drive long-term growth for Indonesia’s micro, small, and medium enterprises (MSME) sector. The transaction was officially formalised in Febuary 2024.
Grab has also made moves to expand its business in recent times. In July last year, the company acquired popular Singapore restaurant reservation app Chope for an undisclosed sum. A spokesperson for Grab and Chope confirmed the acquisition.
“The vast majority of the merchants on our platform are small, medium-sized businesses who don’t have the same resources or know-how that big F&B brands have,” said a Grab spokesperson when MARKETING-INTERACTIVE reached out.
“Our focus is to help level the playing field for them through tools that empower them to grow and manage their businesses more efficiently. We believe the addition of Chope’s products and services provides more synergies for our merchant-partners, especially in helping them capture online-to-offline opportunities,” the spokesperson added.
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