Gojek merges with Tokopedia to create ride-hailing and e-commerce behemoth - Pi...

Gojek merges with Tokopedia to create ride-hailing and e-commerce behemoth

Gojek merges with Tokopedia to create ride-hailing and e-commerce behemoth

May 19, 2021 11:10 am

Indonesia ride-hailing and payments firm Gojek has announced its merger with e-commerce company Tokopedia to form a technological behemoth covering e-commerce, ride-hailing and financial service 

Detail: Gojek shareholders will hold 58 percent of the new entity called Goto Group, which will be preparing for a dual listing in Net York and Jakarta later this year.

Andre Soelistyo, co-CEO of Gojek will lead the combined business as Goto’s CEO, and Tokopedia’s Patrick Cao serving as GoTo’s president.

The merger is the biggest ever deal in Indonesia, Gojek said in the statement, although it did not disclose the value of the transaction.

Gojeck and Tokopedia began merger talks earlier this year after Gojek’s attempt to merge with Singapore-based ride-hailing app Grab failed.

The partnership between Gojek and Tokopedia may have helped finalize the deal. Their partnership can be traced back to 2015 when two companies committed to accelerate e-commerce deliveries in the Southeast Asia regions by using Gojek’s local network of drivers.

Context: The merger will likely help Gojek and Tokopedia to challenge regional rivals such as Grab and e-commerce giant Sea, which operates Southeast Asian largest e-commerce platform Shopee.

GoTo Group will combine e-commerce, on-demand and financial services from Gojek and Tokopedia which were both founded over a decade ago.

In 2020, the combined transaction of Gojek and Tokopedia were more than 1.8 billion and their total gross transaction value was over USD2.2 billion. The companies have more than 100 million monthly active users.

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